Central Bank of Ireland : Money and Banking Statistics: December 2012

The related data tables  are available in the statistics area of the Central Bank website.

Loans and other credit

• Loans to Irish households decreased at a rate of 3.9 per cent in the year ending December 2012, following a decrease of 3.6 per cent in November. Lending for house purchase was 1.6 per cent lower on an annual basis at year end, while lending for consumption and other purposes decreased by 10 per cent over the same period.
• Lending to households declined by €372 million during the month of December, following a net monthly decrease of €264 million during November. This month-on-month change was driven by a decrease of €324 million in non-housing and non-consumption related loans, while loans for house purchase declined by almost €4 million and loans for consumption purposes were €44 million lower over the month.
• The monthly net flow of loans to households averaged minus €384 million in the three months ending December 2012, which comprised average net flows of minus €62 million in loans for house purchase, minus €178 million in loans for consumption purposes, and minus €144 million in lending for other purposes.
• Lending to Irish resident non-financial corporations (NFCs) declined by 3.6 per cent in the year ending December 2012, following a decrease of 3.9 per cent in November.
• During December 2012 loans to NFCs fell by €385 million. The monthly net flow of loans to NFCs averaged minus €184 million in the three months ending December 2012, compared with an average of minus €175 million in the three-month period up to end-November 2012.
• The developments in outstanding loans to NFCs during December 2012 were driven mainly by a decrease of €306 million in loans with an original maturity over one and up to five years. Short-term loans with an original maturity of up to one year, which include the use of overdraft facilities, fell by €168 million during the month, while longer-term NFC loans, with an original maturity over five years, rose by €88 million.
• On an annual basis, NFC loans with an original maturity over five years increased over 2012 by 0.8 per cent. Short-term loans to NFCs rose by 0.7 per cent in the year, while medium-term loans declined by 13.3 per cent over the same period.
• Credit institutions' holdings of debt and equity securities issued by the Irish private sector declined by €8.1 billion during the month of December 2012, with an annual rate of change of minus 16.8 per cent. This follows a decline of 6.9 per cent for the year ending November 2012. Developments in holdings of private-sector securities during December were driven mainly by the redeeming of securities issued by special purpose vehicles (SPVs), where these securities had been backed by residential mortgages.  The winding-up of these SPVs has seen the outstanding balances on these mortgages return to the statistical balance sheet and is responsible for the rise in the outstanding amount of loans for house purchase on-balance sheet in December.  

Deposits and other funding

• Irish resident private-sector deposits rose at an annual rate of 2.5 per cent in December 2012, following a 2.2 per cent increase in the year ending November 2012. Deposits from households were 1.1 per cent higher on an annual basis at end-2012, while deposits from insurance corporations and pension funds (ICPFs) and 'other' non-bank financial intermediaries (OFIs) increased by 6.9 per cent. Deposits from NFCs rose by 1.1 per cent over the same period.
• There was a month-on-month increase of €623 million in Irish resident private-sector deposits during December 2012.  This was driven by increases in household and NFC deposits of €231 million and €735 million respectively. Deposits from OFIs decreased by €262 million, while ICPF deposits were €82 million lower.
• Private-sector overnight deposits rose by €722 million during December 2012, largely reflecting developments in the NFC sector, where overnight deposits increased by €877 million. Overnight deposits from households also rose during December, by €241 million. Meanwhile, overnight deposits from OFIs and ICPFs fell during the month by €395 million.
• Deposits with agreed maturity up to two years fell by €172 million in December 2012, mainly reflecting a decrease of €163 million in the ICPF sector. NFC and OFI deposits in this category showed more moderate decreases of €87 million and €20 million, respectively.  Household deposits in this category rose by €98 million.
• Longer-term savings products covering deposits with agreed maturity over two years increased by €221 million during the month of December, bringing the annual increase in this category to 32.3 per cent.  Developments in December were dominated by increases in deposits from ICPFs and OFIs in this category, by €117 million and €175 million respectively.
• Private-sector deposits from non-residents declined by €2.1 billion during December 2012. Other euro area private-sector deposits fell by €2 billion, while private-sector deposits from non-euro area residents fell by €87 million over the month. Total non-resident private-sector deposits had fallen by 4.1 per cent on an annual basis at end-2012, with deposits from other euro area private-sector entities being 12 per cent lower, and those from the non-euro area private sector being 1.4 per cent higher.
• Credit institutions' borrowings from the Central Bank as part of Eurosystem monetary policy operations fell by €6.6 billion in December 2012. The outstanding stock of these borrowings from the Eurosystem by Irish resident credit institutions amounted to €71.4 billion at end-December. Domestic market credit institutions accounted for €59.2 billion of this total outstanding stock. 
• A number of credit institutions have issued debt under the Eligible Liabilities Guarantee scheme and have retained the bonds concerned for their own use. For methodological reasons these are not included in the Money and Banking Statistics tables. At end-December 2012, the outstanding amount of these bonds was €3 billion.

Please note that the January 2013 Money and Banking Statistics are due to be published on 28 February 2013.

Domestic market credit institutions are those who have a significant level of retail business with Irish households and NFCs, and would exclude the more internationally focused banks in the IFSC.  A full list of these institutions is available in the Credit, Money and Banking section of the Statistics portal of the Central Bank of Ireland website.