Bank lending to households and companies falls further

Central Bank says loans for house purchase down 2.2% in year to end of July

Loans to Irish households and companies continued to decline in the year to July, new data from the Central Bank showed today.

Loans to Irish households and companies continued to decline in the year to July, new data from the Central Bank showed today.

Fri, Aug 30, 2013, 13:01

Loans to Irish households and companies continued to decline in the year to July, new data from the Central Bank showed today.

Household lending fell by 4.4 per cent over the 12 months, following a similar decline in June. Lending for house purchases was 2.2 per cent lower over the year, with other loans falling by 10.8 per cent.

During the month, repayments of loans exceeded drawdowns by €513 million, mainly driven by a €231 million fall in loans for house purchase.

Companies saw lending decline by 4.8 per cent over the year to July, with loans dropping by €370 million during the month. Repayments exceeded drawdowns by €303 million

Meanwhile, credit institutions’ holdings of private sector debt and equity securities fell by €771 million during the month and 16.7 per cent over the year.

Irish resident private-sector deposits climbed by 8.4 per cent in the month, maintaining a steady pace from June, when they rose by 9.6 per cent. But that was mainly lifted by deposits from financial institutions, pension funds and companies, with deposits from households falling by 0.4 per cent in the year.