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Excluding a significant once-off reclassification of a life assurance company deposit within a Covered Bank (€1.2bn), deposits in the Covered Banks decreased marginally by c.-€1.2bn (-0.8%) month on month in April. An analysis of the impact of the reclassification and FX movements is set out in Table A below. On a constant currency basis underlying deposits at €153.4bn were c.-€2.4bn lower month on month in April however, this includes the once-off reclassification of a life assurance company deposit (-€1.2bn).

The cumulative growth for the last 12 months (i.e. Apr 2012 versus Apr 2013) remains positive with headline deposits up c.€2.2bn (1.5%) year on year (or €3.4bn, ignoring the impact of the reclassification) with the pace of year on year growth continuing to moderate. The moderation in the rate of growth of deposit volumes is not unexpected when account is taken of the deposit gathering initiatives by the Covered Banks in 2012, together with the substantial completion of their deleveraging programmes. These factors have resulted in a lower balance sheet funding requirement among the covered banks, which is supported by the return of the Covered Banks to market issuance.

As anticipated, we continue to observe an insignificant impact on deposit volumes in the Covered Banks as a result of the ending of the ELG Scheme for new liabilities on the 28th of March 2013.

Covered Banks usage of Eurosystem funding

Drawings from the ECB by Covered Banks declined by €0.1 billion (or -0.3%) during the month of April. ECB borrowings were flat during the month of April which reflects a reduction in the balance sheet funding requirement within the Covered Banks during the month.

Year-on-year borrowing from the ECB is down c.-€26.7bn (-40%) to stand at c.€39.45bn at end-April. The reduction in borrowing from the ECB has been achieved through managed deleveraging, deposit gathering and the return of AIB, BOI and PTSB to international funding markets.

Next publication date

20/06/2013 May Deposit note

18/07/2013 June Deposit note

22/08/2013 July Deposit note