Lending to households continues to fall

Fri, Oct 12, 2012, 01:00

Lending to companies and households fell in August, continuing the downward trend seen in recent months.

Data from the Central Bank showed lending to Irish resident non-financial corporations (NFCs) fell by 3.2 per cent in the year to the end of August, moderating slightly from the 3.4 per cent drop seen in the previous month.

Month on month, loans to firms were €234 million lower during August. Short-term loans to business fell by €217 million, with medium term loans down by €268 million. Long term loans rose by €251 million.

Meanwhile, households showed a similar trend, falling by 3.7 per cent over the year, compared with 3.6 per cent in the 12 months to July.

Lending for house purchases fell by 2.1 per cent compared with August 2011, and lending for consumption and other purposes was down 8.3 per cent over the same period.

Over the month, lending to households fell by €500 million during August, as loans for other purposes were €277 million and mortgages were down €151 million.

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