Thursday, February 14 11:44:48
Banks operating in Ireland continue to reduce their level of borrowing from the ECB to their lowest level in four and a half years, latest figures from the Department of Finance show.
During January the funding drawn via the ECB refinancing operations declined by E0.9 billion (1.2pc) to E70.1 billion - its lowest level since September 2008.
Year-on-year, funding drawn from the ECB has reduced by E22.6 billion or 24pc. The reduction from peak (end November 2010) is E66.4 billion or 49pc.
Drawings from the ECB by Covered Banks (excluding IBRC) declined by E0.7 billion (or 1pc) during the month of January. This reduction in January was primarily as a result of AIB and PTSB raising E1.1 billion in new funding from capital markets.
Year-on-year borrowing by the covered banks from the ECB is down E18.3 billion (28pc) to stand at E48.1 billion at end-January.
The steady decline in reliance on ECB funding reflects the continued strengthening of the banking system, albeit from a weak base. The reduction in borrowing from the ECB has been achieved through managed deleveraging, deposit gathering and the return of AIB, BOI and PTSB to international funding markets, the Department said.