Thursday, September 20 11:34:22
Deposits at covered banks remained stable though August at E154 billion while Irish banks' reliance on funding from the ECB fell by E400m, latest Department of Finance figures show.
It said that this demonstrates continued depositor confidence in the strength of the banking system following its successful recapitalisation last year.
Headline deposits fell during August by around E0.3bn (-0.2pc) due to exchange rate movements, the Department said.
Adjusting for exchange rate movements, underlying deposit volumes continued to grow in August by an estimated E0.3bn.
Since the start of the year Deposit in the Irish covered banks have increase by E7.0bn and have increased by E14.0bn to E154.1bn since reaching a low-point of c.E140bn in July 2011.
Cumulatively, on a constant currency basis deposit volumes have increased by E5.1bn since the start of the year.
The usage of Eurosystem funding by AIB, Bank of Ireland and ptsb reduced by a further E0.4bn in August 2012, reflecting the continued progress that is being achieved by the Banks in terms of deleveraging and deposit gathering.
Eurosystem funding to Covered Banks peaked at E93bn in January 2011 and has since reduced by 34pc or E32bn to E61bn.
"While there is still much work to do, the continued decline in ECB borrowing demonstrates the progress being made in restructuring the domestic banking system," the Department said.
Ireland's share of total Eurosystem funding has declined steadily from a peak in December 2010. The Irish banking system now accounts for 5.0pc of total Eurosystem funding, down from a peak of 18.1pc.