Published on 

Usage of ECB funding by banks in Ireland at lowest level since September 2008

Banks operating in Ireland continue to reduce their level of borrowing from the ECB. During December the funding drawn via the ECB refinancing operations declined by €4.8 billion (6.3%) to €70.9 billion – its lowest level since September 2008.

Year-on-year, funding drawn from the ECB has reduced by €36.3 billion or 34%. The reduction from peak is €65.5 billion or 48%.

The share of total ECB funding by banks in Ireland has declined steadily from a peak in November 2010 of c.26.5% immediately after the bailout to 6.3% at end December 2012.

The covered banks (excluding IBRC) account for c.4.3% of total Eurosystem funding at end-December 2012, down from a peak of c.18.8%.

Meanwhile headline deposits at Irish covered banks increased by €1.6bn in December to €155.8bn. On a constant currency basis, deposits were €1.9bn higher month on month in December.

The cumulative growth since the start of the year is strong with headline deposits up €8.7bn (6%) at year-end or €7.9bn on a constant currency basis, although the pace of year on year increase has moderated somewhat.