Savers withdraw €1bn from our bailed-out banks
Published 01/09/2011 | 10:59
IRISH individuals and companies pulled another €1bn out of our bailed-out banks in July, pushing the level of private-sector Irish deposits to a new low of €102.6bn.
The figures were revealed in new Central Bank data released yesterday, which also charted a fall off in lending across Irish banks. The fall in "private sector" deposits at the six bailed-out banks is particularly stark as their fall accounted for the entire drop across a group of about 20 "domestic" Irish banks.
This means that savers and companies are pulling their money out of bailed-out banks but not out of foreign banks, suggesting a remaining issue of confidence around the Irish banks.
Yesterday's data also showed that July marked the bailed-out banks' first increase in overseas deposits for over a year, as non-Irish funds jumped about €1bn after a period of heavy declines.
It is understood that this rise was partly due to intergroup movements of money between different parts of the Irish-owned finance sector, rather than 'new' deposits.
Banks have said that the market for corporate deposits, including those from overseas entities, remains challenging.
On the lending front, the Central Bank said loans to households were 3.9pc lower in the year to the end of August, including a 2.4pc fall in mortgages and an 8.8pc drop in borrowings for other purposes.
Lending to 'non-financial corporates', or ordinary companies, was down 2.4pc in the year to end-July, an improvement on the 3pc fall in the year to end-June.