Wednesday, October 31 11:15:18
Loans to Irish households declined at a rate of 3.7 per cent in the year ending September 2012 while the pace of the lending decline to business picked up with a fall of 4.2pc, latest figures from the Central Bank show.
Lending for house purchase was 2 per cent lower on an annual basis in September, while lending for consumption and other purposes declined by 8.4 per cent over the same period.
Lending to households declined by E88 million during the month of September, following a net monthly decrease of E500 million during August. Developments in September were driven by a decline in loans for consumption and other purposes of E99 million, while loans for house purchase increased by E11 million during the month, the figures show.
On a monthly basis, loans to businesses decreased by E358 million during September, following a decrease of E234 million in August. The monthly net flow of loans to NFCs averaged minus E296 million in the three months ending September 2012, compared with an average of minus E310 million in the three-month period up to end-August 2012.
The Central Bank figures also show a stabilisation in deposits.
Irish resident private-sector deposits increased at an annual rate of 1.8 per cent in September 2012, following growth of 0.7 per cent in the year ending August 2012. Deposits from households were 0.7 per cent higher on an annual basis at end-September, while deposits from Insurance Corporations and Pension Funds (ICPFs) and OFIs increased by 6.4 per cent. Deposits from NFCs fell by 1.2 per cent over the same period. There was a month-on-month decline of E943 million in Irish resident private-sector deposits during September 2012, reflecting decreases across three of the four depositor sectors. Deposits from ICPFs/OFIs fell by E709 million during September, while NFC deposits declined by E629 million. Deposits from Irish resident households increased by E394 million during the month.