IRELAND’S BANKS are now more dependant on funding from the European Central Bank than at any other time since the EU-IMF bailout deal was agreed, it has emerged.
New figures published by the Central Bank of Ireland showed that the banking sector had increased borrowings from the European Central Bank by around €1.5bn over the month of January.
Deposits from domestic consumers, meanwhile, fell by €1.2 billion over the course of the month – meaning deposits had fallen by 8 per cent on a year-to-year basis, while deposits from ‘other financial intermediaries’ fell by 7.1 per cent.
Total deposits in the six institutions covered by the government bank guarantee fell by around 5.5 per cent – or €18.6bn – to €319.3bn.
A Central Bank spokesman told Bloomberg, however, that around three-quarters of that drop was because of a fall in deposits being made in individual banks by others.
Lending to householders fell by 5.1 per cent over twelve months, and loans to non-financial companies by 1.4 per cent.
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