Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
LOANS TO IRISH households declined by €816 million during January, the latest Money and Banking Statistics release from the Central Bank has revealed.
The January decrease was over twice the net monthly decrease of €372 million in December 2012. Housing related loans in January dropped by €405 million, while consumption related loams decreased by €344 million.
Other loans decreased by €68 million over January.
Over the three months from November 2012 to January 2013 (inclusive), the net flow of household loans dropped, on average, by €135 million in house purchase loans, €205 million in loans for consumption purposes, and €144 million in lending for other purposes.
To view a larger image, please click here.
(Money and Banking Statistics – January 2013)
Non-financial corporations
Lending to NFCs resident in Ireland dropped by €214 million, or 3.3 per cent in January, compared to a drop of 3.6 per cent in December.
Over the three months from November 2012 to January 2013 (inclusive), the net flow of these loans dropped by an average of €104 million. This average drop was much lower than the average drop of €184 million which was observed over the three month period from October to December 2012.
This drop was due to the maturity of nearly €1.2 billion in loans. Short-term loans (maturity of less than one year) increased by €372 million in January, with longer-term loans (maturity of over five years) rising by €583 million.
To view a larger image, please click here.
(Money and Banking Statistics – January 2013)
Deposits and other funding
Private-sector deposits by those resident in Ireland rose at an annual rate of 3.7 per cent in January, an increase on the 2.5 per cent increase in the year which ended December 2012.
This equated to a month-on-month increase of nearly €1.4 billion
Deposits from households were 1.2 per cent higher annually at January end, while deposits from insurance corporations and pension funds (ICPFs) and other financial intermediaries (OFIs) increased by 8.2 per cent.
Deposits from NFCs also rose by 5.2 per cent.
For a larger image, please click here.
(Money and Banking Statistics – January 2013)
Money borrowed from the Central Bank by credit institutions as part of Eurosystem monetary policy fell by €4.3 billion in January, with outstanding stock amounting to €67.1 billion, €55.7 billion of which was held by domestic credit institutions.
To embed this post, copy the code below on your site
How would anyone take out a loan,all of us being screwed into the ground with this goverment.
they would take one look at your income v’s outgoings then tell you to sod off ,
thats why borrowings are down ………………we ain’t becasue we ain’t got the money to pay it back
had to borrowmoney from my dad a few weeks back on a friday ,so as I could put dieselin the car to get to work ,
thats how bad things are ,
Isn’t that because banks aren’t lending?????????
So increasing Dirt tax didn’t have the desired effect.
I will never borrow from a bank.
They are trying to entice you into borrowing more that you can afford so you are further into debt, and they own you a little bit more.
Ponzi planet made a good argument all the money the fed is ment to be holding, is equal to 11 times the size of the Empire State Building.
It’s a fake system, it is all digital the money you are paying back didn’t exist in the first place.
The banking system is one of the most corrupt systems in this world, followed by corporation and then by politicians and they are all working together and we are all buying into a fake system with fake rules but very real consequences.
No money is equal to no life.
Debt slaves.
Gold is going to become the new currency, value if gold has gone through the roof and this will devalue the paper currency.
Have a listen to Gerald Cellente , his recent trends forecast is on YouTube. He is nearly 100% accurate trends forecaster.
Adelle, you are right about borrowing from banks. They will lend you an umbrella on a sunny day and want it back on a rainy day.
Credit is the true drug of the middle classes.
But remember that if no one borrows, the banks are no longer needed!
Hmmm!
I see the Bank of England are toying with the idea of negative interest to try to encourage banks to lend and I suppose savers to spend ,crazy times!
We have slipped into the Japan trap. In Japan, there is very little borrowing although interest rates are practically zero per cent. This has resulted in two decades of recession.
Frugality is a natural and responsible reaction to austerity but John Maynard Keynes identified that you get a kind of negative feedback loop in this situation. If everyone spends less, saves more, consumes less, you compound a recession. People are naturally fearful and save more for the never ending rainy days.
There are now more than incipient signs of deflationary and wind down trends, despite the slight decrease in unemployment.
Although not acceptable to most people, if you take the real balance sheet position with full provision for mortgage impairments, the pillar banks are truly insolvent.
If people see repossessions, especially enforced evictions, this will encourage even more saving and less spending.
I am pruning down further so as to have money for the property tax. I have cancelled the VHI, will get rid of the car next month, Freeview instead of UPC and pare down everything. Consumerism is just a habit.
Match every new charge or tax imposition with reduced spending. Frugality is the only weapon left. Eventuality the dimwits will wake up to the idea that austerity in a recession is applying blood letting to a patient who has already suffered a life threatening loss of blood.
Banks or credit unions won’t lend. Simple as that.
Get your facts right. Credit Unions are actively lending to their members. I should know, I work in one.
So are banks I’ve been offered car loans over the phone.
Should the heading for this article be – Borrowings by Irish households nearly €1bn less in January ?
Oh god. He has a beard as well. It’s almost a badge that says ‘I am completely out of touch’.
have your say