Small drop in deposits at banks under government guarantee
Deposits held by Irish banks covered by the government guarantee fell marginally in November after hitting a near two-year high in October, the Department of Finance has said.
The decline occurred as the Government was considering whether to extend the bank guarantee scheme. In the end, Finance Minister Michael Noonan did extend the guarantee for another six months.
Irish banks suffered tens of billions of euro in deposit outflows in the run-up to the country's €85bn bailout.
Deposits rose strongly last winter and in spring and have been broadly stable since the summer, when banks started to reduce interest rates paid on deposits.
"It is encouraging that, as advertised, deposit interest rates for both corporate and retail customers continue to trend lower across the sector that deposit volumes have remained stable in the second half of the year," the department said yesterday.
Deposits at the UK units of Irish banks were broadly unchanged in November.
Deposits have risen by about €14.1bn since the third quarter of last year following the recapitalisation of the banking system.