Household lending continues decline
Central bank dependence was at its lowest level in almost two years, the Central Bank said today.
New data showed shrinking balance sheets led to a decline independence on ECB operations of €3.9 billion.
The figures indicated that dependence on Emergency Liquidity Assistance from the Irish Central Bank was also lower, falling by €800 million in the month.
Household lending was 3.6 per cent lower over the year, slowing slightly from the decline of 3.7 per cent recorded in June.
Home loans continued to fall, declining by 2.1 per cent compared with July 2011, and lending for consumption and other purposes was 7.8 per cent lower.
The latest figures from the Central Bank showed lending to households was down by €471 million over the month, as loans for consumption fell by €225 million. Mortgages were down €157 million, while loans to households for other purposes declined by €88 million.
In the business market, lending to non-financial corporates was down by 3.4 per cent in the year to the end of July, picking up pace from June when loans were 2.9 per cent lower. Overall, loans to NFCs fell by €297 million during July.
There was a rise in the number of short term loans - which includes the use of overdrafts - over the month, while longer-term loans were also higher. Medium-term NFC loans fell by €673 million over the month.
Over the year, both long and medium term loans fell, while short-term facilities increased.
On an annual basis, Irish resident private-sector deposits were 0.8 per cent lower at the end of last month, although the pace of decline had moderated significantly from June, when the fall was 2.5 per cent. However, on a monthly basis, deposits rose €1.9 billion, mainly in the other financial intermediaries sector.