OREANDA-NEWS. The Central Bank of Irland has released its statistics on market-based financing activities of financial and non-financial firms incorporated in Ireland at end-June 2015.

Trends in Financing of all Irish-resident Entities

  • The outstanding amount of debt securities issued by both Irish resident entities and the Government was €870.3 billion at end-June 2015, an increase of just 0.8 per cent year-on-year.  There was also little change to the outstanding amount of debt securities issued by euro area residents (at -1.1 per cent).
  • Debt financing for the banking sector stood at €58.1 billion at the end of June 2015, a decrease of €13.2 billion year-on-year.
  • Equity shares had a market capitalisation of €545 billion at end-June.  Quoted shares (€544.6 billion), which account for over 99 per cent of total equity, saw a year-on-year increase of 73.6 per cent.  This is largely due to the impact of mergers & acquisitions, and redomiciled entities in the NFC sector.  The value of the stock of quoted shares issued by euro area residents increased by 13.2 per cent.

Banking Sector

Since June 2014, the outstanding amount of debt securities for the banking sector has decreased year-on-year by 18.5 per cent. Over the month, bank bonds decreased by €2.2 billion, to stand at €58.1 billion at the end of June 2015 (Chart 1 & 2). This reduction primarily reflected a fall of €12.6 billion in long-term debt securities along with a decrease of €552 million in short-term debt securities.  Long term debt securities account for 84.7 per cent of the total debt securities issued by the banking sector.

Over the past 12 months, the total outstanding amount of debt securities for the banking sector across the euro area decreased by 7.7 per cent.  This decline reflects continuing deleveraging in the banking sector.

The market value of equities in the banking sector saw a year-on-year increase of 29.2 per cent to total €26.2 billion (Chart 3).

Non-Financial Corporations

In June 2015, the value of the quoted shares in the non-financial corporations (NFC) sector increased by €57.3 billion from the previous month to stand at €497.8 billion.  This represented a year-on-year increase of 80.4 per cent (Chart 4).  This was largely due to the impact of mergers & acquisitions, and redomiciled entities.

Over the past 12 months, the total outstanding amount of debt securities for NFCs in the euro area increased by 4.6 per cent.

The outstanding amount of debt securities issued by NFCs decreased to €10.2 billion in June 2015.