The Central Bank of Ireland (CBI) has today issued its monthly financial data for banks operating in Ireland. The headline with respect to deposits is that money is still disappearing from our banking sector, at a reduced rate compared with the end of 2010 but still at a level that should be of concern and which equals the average monthly decline for the past tumultuous year. Here are the latest deposit figures for the 20 financial institutions which serve the domestic economy. The information is sourced from the CBI’s Table A.4.1
And here are the latest deposit figures for all Irish financial institutions including those operating in our Irish Financial Services Centre (IFSC), many of which don’t serve the domestic economy. The information is sourced from the CBI’s Table A.4
(1) Monetary Financial Institutions (MFIs) refers to credit institutions, as defined in Community Law, money market funds, and other resident financial institutions whose business is to receive deposits and/or close substitutes for deposits from entities other than MFIs, and, for their own account (at least in economic terms), to grant credits and/or to make investments in securities. Since January 2009, credit institutions include Credit Unions as regulated by the Registrar of Credit Unions. Under ESA 95, the Eurosystem (including the Central Bank of Ireland) and other non-euro area national central banks are included in the MFI institutional sector. In the tables presented here, however, central banks are not included in the loans and deposits series with respect to MFI counterparties.
(2) NR Euro are Non-Resident European depositors
(3) NR Row are Non-Resident Rest of World depositors (ie outside Europe)
As examined in a previous entry on here, there are difficulties in analysing data because the CBI produces much-aggregated figures but here are what I believe to be the relevant headlines.
(1) Deposits by the Irish private sector (households and businesses) in the 20 domestic financial institutions fell by €1.5bn in January, 2011 (€19.6bn is the annual decline and the previous months decline was €3.3bn). It is likely that the decline in deposits will be filled with emergency liquidity assistance from the CBI or extraordinary measures by the ECB.
(2) Total deposits by all sources in the 20 domestic financial institutions fell by €19.9bn in January 2011 (€134.6bn is the annual decline and the previous month’s decline was €40.3bn).
Although the rate of decline in deposits slowed in January, 2011 bear in mind that the deposit information does not allow us to examine the position of the six State guaranteed banks in relation to other “foreign” banks which serve the domestic economy like KBC, Nationwide UK, Rabo, NIB and Ulsterbank. It should be said that the Bank of Ireland financial update a week ago and the IMF Staff Report at the start of February 2011 both claimed that deposit flight had moderated and that deposit levels were stabilising.
UPDATE: 28th February, 2011. The CBI has for the first time produced information on the subset of the 20 domestic financial institutions covered by the State guarantee, that is AIB, Anglo, Bank of Ireland, EBS, Irish Life and Permanent and INBS. Firstly there’s a draft consolidated balance sheet:
And secondly there is a new table A.4.2 from which the following information is extracted:
On the face of it, it appears that deposits continue to flee at an elevated level and the January 2011 declines were above the average monthly decline for the previous 12 months. The information contained in the new table is being analysed and there will be further comment here later ..