Business

Friday 26 May 2017

Banks borrowing less from ECB and more from Irish Central Bank

Independent.ie reporters

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.

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