Deposits broadly stable in October

Deposits remained broadly stable in October, new data from the Department of Finance showed today.

The figures showed deposits volumes were €152.7 billion for the month, falling by €1.5 billion month on month.

The decline was largely due to an expected outflow of short-term deposits from the banking system. Balances in the UK were also hit as sterling weakened against the euro, falling 1.4 per cent compared with exchange rates in September.

The figures also noted an “insignificant” impact on deposits following the end of the Government guarantee in March.

The Department of Finance also said banks continued to reduce their level of borrowing from the European Central Bank, continuing a trend seen in recent months. Funding drawn down from the ECB has fallen by 48 per cent, or €37.4 billion year on year, and 70 per cent from the peak of €135.4 billion in November 2010.