Sunday 18 March 2018

ECB funding for Irish banks at lowest in five years

Mario Draghi, President of the European Central Bank
Mario Draghi, President of the European Central Bank
Colm Kelpie

Colm Kelpie

BANKS continued to wean themselves off loans from the European Central Bank (ECB) last month, with funding now at its lowest in five years.

Borrowings declined by €0.4bn during August and were down 45pc on the same period last year to stand at €33.47bn at the end of the month.

“The steady decline in reliance on ECB funding reflects the continued strengthening of the banking system and has been achieved through managed deleveraging, deposit gathering and the return of AIB, Bank of Ireland and Permanent TSB to international funding markets,” the Department of Finance said.

Meanwhile deposits at the state’s banks remained stable last month, increasing by €0.5bn as a result of money being lodged by corporations outside of Ireland.

Sterling strengthened over the month by about 1pc, which led to a marginal improvement for UK deposit volumes on a month on month basis of about €68m.

But deposits have fallen over the course of the year by 0.9pc or €1.4bn, with foreign exchange movements being largely blamed.

The Department also said that it continues to see no impact on deposits from the ending of the bank guarantee in March.

Online Editors

Business Newsletter

Read the leading stories from the world of Business.

Also in Business