Information release 29 June 2012
The Central Bank of Ireland today published the May 2012 Money and Banking Statistics.
The related data tables are available in the statistics area of the Central Bank website.
Loans and other credit
- Loans to households continued to decline during May 2012, and were 3.9 per cent lower on a year-to-year basis, following a decline of 4 per cent for the year ending April 2012. Lending for house purchase was 2.5 per cent lower on an annual basis in May 2012, while lending for consumption and other purposes declined by 7.7 per cent over the same period.
- Lending to households declined by €264 million during the month of May following a net monthly flow of minus €582 million in April. Developments in May were largely driven by a decrease in loans for house purchase of €242 million. Loans for other purposes also decreased, by €44 million, while loans for consumption increased by €21 million.
- The monthly net flow of loans to households averaged minus €338 million in the three months ending May 2012, which consists of average net flows of minus €163 million in loans for house purchase, minus €146 million in loans for consumption purposes, and minus €29 million in lending for other purposes.
- Lending to the non-financial corporate (NFC) sector declined by 2.1 per cent in the year ending May 2012, following an annual decline of 1.8 per cent in April 2012.
- On a monthly basis, loans to NFCs decreased by €338 million during May 2012, following a decrease of €326 million in April. The monthly net flow of loans to NFCs averaged minus €210 million in the three months ending May 2012, compared with an average of minus €153 million in the three-month period up to end-April 2012.
- Short-term loans to NFCs with an original maturity of up to one year, which includes the use of overdraft facilities, increased during May by €68 million, following an increase of €155 million in April. Medium-term NFC loans decreased in May 2012 by €301 million, whereas longer-term NFC loans also decreased, by €105 million.
- On an annual basis, longer-term NFC loans with an original maturity over five years fell by 1.8 per cent in May 2012. Short-term NFC loans continued to increase moderately, as loans with an original maturity up to one year grew by 3.6 per cent in the year ending May 2012. Meanwhile NFC lending between one and five years original maturity declined by 7.2 per cent over the period.
- Credit institutions’ holdings of debt and equity securities issued by the Irish private sector decreased by €87 million during the month of May, with an annual rate of change of minus 6.5 per cent. This follows a decline of 7.3 per cent for the year ending April 2012. Credit institutions’ holdings of debt securities issued by other (non-bank) financial intermediaries (OFIs) decreased by 6.7 per cent on an annual basis in May 2012.
Deposits and other funding
- Irish resident private-sector deposits were 3 per cent lower on an annual basis at end-May 2012, compared with a decline of 3.4 per cent over the year ending April. Deposits from households were 0.3 per cent lower on an annual basis in May while deposits from NFCs declined by 3.3 per cent. Deposits from insurance corporations and pension funds (ICPFs) and OFIs fell by 7.9 per cent over the same period.
- There was a month-on-month decrease of €69 million in Irish resident private-sector deposits during May. Household and NFC deposits increased by €48 million and €43 million, respectively, while OFI/ICPF deposits decreased by €160 million during May.
- Private-sector overnight deposits decreased by €199 million during May 2012. Household sector overnight deposits decreased by €30 million during the month, while overnight deposits in the OFI and ICPF sectors also decreased, by €146 million and €118 million, respectively. The NFC sector registered an increase of €95 million in overnight deposits during May.
- Household deposits with agreed maturity up to two years increased by €164 million during the month of May. NFCs and ICPFs also increased their deposits in this category, by €28 million and €153 million, respectively. OFI deposits with agreed maturity up to two years decreased by €219 million, during the month.
- Private-sector deposits from non-residents increased by €670 million during May 2012, predominantly reflecting developments in the IFSC-based banks. There was an increase of €459 million in deposits from other euro area private-sector residents during the month, while private-sector deposits from non-euro area residents increased by €211 million. Total non-resident private-sector deposits were 2.9 per cent lower on an annual basis at end-May 2012, with deposits from other euro area private-sector entities 5.6 per cent lower, and those from the non-euro area private sector 1.2 per cent lower.
- Total deposits from other euro area residents, including deposits from MFIs, general government and the private sector, fell by €245 million during May. Total deposits from non-euro area residents increased by €892 million during May, which mostly related to an increase in deposits from affiliated MFIs.
- Credit institutions’ borrowings from the Central Bank as part of Eurosystem monetary policy operations fell by €1.7 billion in May 2012. The outstanding stock of borrowings from the Eurosystem by Irish resident credit institutions amounted to €88 billion at end-May. Domestic market credit institutions accounted for €75 billion of this total outstanding stock - a month-on-month decrease of €1.5 billion.
- 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-May 2012, the outstanding amount of these bonds was €13 billion.
 Money and Banking statistics are compiled in respect of business written out of all within-the-State offices of both credit institutions authorised to carry on banking business in the State under Irish legislation and credit institutions authorised in other Member States of the EU operating in Ireland on a branch basis. Credit institutions authorised in other EU Member States operating in Ireland on a cross-border basis, i.e., with no physical presence in the State, are not included in the statistics. A full list of Credit Institutions resident in the Republic of Ireland is available on the Bank’s website. Recent data are often provisional and may be subject to revision. The extensive set of Money and Banking Statistics tables are also available on the Central Bank of Ireland website, along with the detailed Money and Banking Explanatory Notes.
 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.