Banks borrowing less from ECB and more from Irish Central Bank
Published 12/08/2011 | 15:43
The reliance of Irish banks on European emergency funding has fallen below €100bn for the first time in a year.
Our banks, which are in the main responsible for the financial crisis and the €67.5bn EU/IMF bailout, are reliant on European Central Bank funding for day-to-day operations but new figures also show they have switched their dependence to the Irish Central Bank.
Financial institutions, including foreign banks with subsidiaries here, had €97.6bn in loans from the ECB at the end of July, down from over €100m in June.
However, in the same period emergency funding from the Irish central bank rose to just under €57bn, more than €2bn compared with the previous month.
Their total reliance on this funding stands at €155bn.
Banks have been selling off subsidiaries and loan books in a bid to reduce this dependence and have a target of 2013 to shrink their balance sheets by €70bn.