Central Bank figures show rise in bank deposits as loans still fall
Deposits at Irish banks rose for a sixth month in a row in January while loans to households and business continued to fall, according to the latest Central Bank data.
Deposits, traditionally a key source of bank funding, rose at an annual rate of 3.7 per cent last month, up from a 2.5 per cent increase in December.
The Central Bank said there was a month-on-month increase of almost €1.4 billion in Irish resident private-sector deposits during January, reflecting increases across all depositor sectors.
In contrast, loans to households fell at a rate of 4 per cent in January, marginally up on the 3.9 per cent recorded in December.
Loans to households fell €816 million last month compared with a decline of €372 million a month earlier.
Lending for house purchases was 1.8 per cent lower on an annual basis in January, while lending for consumption and other purposes was down by 10 per cent over the same period. Lending to Irish businesses fell by 3.3 per cent on an annual basis in January, following a decrease of 3.6 per cent in December.