OREANDA-NEWS. Central Bank of Ireland: Money and Banking Statistics – October 2015.

Summary

Lending to households and non-financial corporations (NFCs) declined on a monthly and yearly basis in October 2015. Conversely, household and NFC deposits increased on a monthly and annual basis.  The €1.1 billion increase in household deposits in October was the largest recorded since December 2008. 

Loans and other credit

  • Irish household loan repayments exceeded drawdowns by €253 million during October. This followed an increase of €78 million in September, which had marked the first increase in this category since December 2014. Developments in October were predominantly driven by a decline in lending for house purchase of €138 million, while loans for consumption and other purposes also declined by €115 million during the month.

  • Loans to households decreased by 2.5 per cent year-on-year in October 2015. Loans for house purchase, which accounted for 83 per cent of total household loans, declined at an annual rate of 2.4 per cent. Lending for consumption and other purposes declined by 3 per cent year-on-year.

  • In terms of loans for house purchase, repayments exceeded drawdowns by €1.9 billion over the 12 months to end-October 2015. Repayments also exceeded drawdowns by €501 million for non-housing loans over the same period.

  •  Irish NFC loan repayments exceeded drawdowns by €621 million in October. This monthly decline was reflected across all three maturity categories of NFC loans.

  • The net flow of NFC loans over the 12 months to end-October 2015 was minus €4.5 billion with the most pronounced fall seen in the up to one year category of €3.8 billion.

  • Lending to Irish resident NFCs recorded a year-on-year decline of 7.7 per cent in October 2015, following an annual decline of 6.1 per cent in September 2015. This resulted from annual declines for up to one year and over five year categories. In contrast, the over one and up to five year category recorded an annual increase of 11.4 per cent.

  • Loan repayments from Irish other financial intermediaries (OFIs) exceeded drawdowns by €443 million in October, marking the largest monthly decrease since December 2014. The net flow of OFI loans over the 12 months to end-October 2015 was minus €10 billion.

  • Credit institutions’ holdings of debt and equity securities issued by the Irish private-sector decreased by €1.7 billion during October, following a decrease of €1.9 billion in September. The decrease in holdings of debt and equity securities during October was mainly attributable to developments in the OFI sector. The annual rate of decline in credit institutions’ holdings of debt and equity securities issued by the Irish private sector was 16.7 per cent at end-October.

Deposits and other funding

  • The outstanding stock of Irish private-sector deposits totalled €178 billion at end-October. Of this, 53 per cent represented household deposits, with NFC, OFI and ICPF deposits accounting for 25 per cent, 17 per cent and 5 per cent, respectively. Irish private-sector deposits increased by €3.9 billion over the month, which was driven by inflows from all sectors, with overnight deposits contributing most to this increase.

  • Household deposits increased by €1.1 billion in October marking the largest month-on-month increase in this category since December 2008. Over the 12 months to end-October 2015, household deposits increased by €2.4 billion, or 2.6 per cent. There have been strong inflows into overnight deposits, growing by €7.4 billion over the 12 months to end-October 2015. Conversely, deposits with agreed maturity declined by €5.3 billion over the same period.

  • NFC deposits increased by almost €1.5 billion in October. This increase was driven by developments in the overnight deposit category, where there was a €1.6 billion net increase over the month, which was somewhat offset by small declines within agreed maturity and redeemable at notice categories. NFC deposits increased by €4.9 billion, or 12.4 per cent year-on-year, which was mainly driven by a €4.6 billion increase in overnight deposits.

  • OFI deposits increased by €1 billion in October, marking the largest month-on-month increase since March 2013. The annual rate of change in OFI deposits, however, remained negative, at minus 17.2 per cent in October 2015.

  • Deposits from insurance corporations and pension funds (ICPFs) increased in October by €296 million, following three consecutive monthly declines. On an annual basis, deposits from ICPFs fell by 0.1 per cent. The annual increase in overnight deposits from this sector was largely offset by decreases in the agreed maturity categories.

  • Credit institutions’ borrowings from the Central Bank as part of Eurosystem monetary policy operations increased by €130 million in October; this was the same increase that occurred in September. The outstanding stock of Central Bank borrowings was €10.3 billion at end-October 2015, of which the domestic market group of credit institutions accounted for  €9.6 billion.