Deposits from households a decline in November, as households withdrew €1 billion more than they lodged during the month. This seasonal effect is in line with similar net withdrawals seen in 2014 and 2015. Point-of-sale debit card transactions totalled €2.9 billion in November, over €500 million greater than in the corresponding month in 2015. Retail spending accounted for over half of this expenditure.1
Developments in Household credit and deposits
- Loans to households adjusted for loans sales and securitisations declined by 2.8 per cent in November compared with the same period in 2015.2
- Mortgage loans, which account for 83 per cent of on-balance sheet household loans, declined by €150 million in November 2016 (Chart 1). In year-on-year terms, mortgage loans declined by 1.6 per cent, with households repaying almost €1.2 billion more than was advanced in new loans during the year.
- Non-housing loans declined by €12 million in November, and declined by 0.7 per cent in year-on-year terms. However, consumer credit recorded strong growth of 4.1 per cent in annual terms in November.
- Deposits from households declined by €1 billion in November. In annual terms, household deposits increased by €1.9 billion or 2 per cent in November (Chart 2). The November decline reflects seasonal trends, evident in previous years.
- Developments in loans and deposits mean that Irish households continued to be net funders of the Irish banking system for the seventeenth consecutive month. Banks held €6.8 billion more household deposits than loans at end-November. By contrast, in early 2009 household loans exceeded deposits by €53.5 billion.
Developments in NFC credit and deposits
- Lending to NFCs declined by €2.5 billion or 5.1 per cent in annual terms in November. This decline, however, masks divergent trends between short and medium-term maturities.
- Medium-term net lending to NFCs grew by 5.8 per cent year-on-year in November, with drawdowns exceeding repayments by €746 million. In contrast short-term net lending declined by €2.2 billion over the past 12 months.
- NFC deposits declined by €237 million in November (Chart 5). Deposits with agreed maturity of up to two years declined by €105 million in the month. All other deposit categories also showed decreases during the month.
- In annual terms, NFC deposit flows grew by 5.6 per cent in November, reflecting strong corporate inflows into the Irish banking system.
Developments in other counterparty sectors
- Lending to the Irish private sector has been the main driver of net lending to Irish residents since early 2014 and accounted for 75 per cent of banks’ loan books in November (Chart 6). In annual terms, outstanding loans to the Irish private sector declined by 3.7 per cent.
- Credit institutions’ holdings of Irish issued debt and equity securities declined by €122 million in November.
- Irish banks’ borrowings from the Central Bank as part of Eurosystem monetary policy operations remained static in November. The outstanding stock of Central Bank borrowings was €8 billion, with the domestic market banks accounting for 95 per cent of this.
Money and Banking statistics cover all credit institutions resident in Ireland. This includes licensed banks, building societies and, since January 2009, credit unions. A resident office means an office or branch of the reporting institution which is located in the Republic of Ireland. Data are reported in respect of resident office business only. Recent data are often provisional and may be subject to revision. For further detail please see the Money and Banking webpage for:
- An extensive set of Money and Banking Statistics Tables.
- A list of Irish Resident Credit Institutions.
- Money and Banking statistics Explanatory Note.
This measure of lending includes repayments on serviced loans which no longer appear on the balance sheet due to derecognition and transfer.
1 Note that credit and debit card statistics differ from lending statistics.
2 See Note 2 on page 4.