Sunday 18 March 2018

Deposits at four covered banks rise by €5.2bn in 2012

John Mulligan

John Mulligan

Deposits at the four Irish banks being propped up by the taxpayer rose by €900m, or 0.6pc, during May to €152bn, the Department of Finance said last night.

That rise brought the cumulative rise in deposits since the beginning of the year to €5.2bn, or 3.3pc. The covered banks are AIB, Bank of Ireland, Permanent TSB and Irish Bank Resolution Corporation, formerly Anglo Irish Bank. They're covered by the State Guarantee Scheme.

The figures show that while the rate of growth experienced since the start of 2012 moderated in May, the Department said the broad base of the growth in the month was a positive development.

It added that foreign exchange movements also accounted for some of the growth in non-Euro based deposits.

But at €152bn, the current level of customer deposits at covered banks is unchanged on February 2011, and slightly lower than the €155bn that was on deposit in January 2011.

The €900m increase recorded in May comes after a €2.1bn rise in deposits in April.

The department said that on-going concerns in European markets have resulted in the moderation of deposit growth recorded last month.

In addition, it said, euro weakness relative to sterling last month also provided some of the increase in deposits sourced in the UK.

The rise in deposits comes as severe political and economic instability in Greece demonstrated just how deposit bases can be rapidly eroded.

Greek bank customers had been withdrawing as much as €800m a day from their financial institutions in advance of the recent general election. They feared a victory by the leftists would result in a return of the drachma.

Irish Independent

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