Figures released by the Central Bank of Ireland (CBI) this morning for the month of June 2011 show that the flight of private sector deposits from domestic Irish banks continued in the month of June, though at a lesser rate than during the more tumultuous months of the past year. In total terms for all Irish banks – the six State-guaranteed banks, the local branches of foreign banks and banks in the IFSC which don’t service the Irish economy – deposits fell by 1.5% or €9bn from €601bn to €592bn.
The CBI produces a mountain of figures each month – the focus on here is the total of private sector deposits in the six State-guaranteed banks, based on the belief that ifIrelandis to recover and develop a sustainable banking system, then companies and households will need to have the income and confidence to place deposits in Irish banks. In June 2011, private sector deposits in the State-guaranteed banks dropped by 3.6% from €107.5bn to €103.5bn. That’s the biggest monthly drop since last November 2010 when the IMF/EU bailout was agreed, and the second biggest monthly drop since September 2008 when the financial crisis blew up. Not good.
The CBI now produces monthly figures on savings and loans which analyses deposits in considerable detail – see here for the list of Excel spreadsheets available. Household deposits in all Irish banks (including foreign banks and credit unions) increased very slightly in the month from €92.133bn to €92.215bn. The overall loss of deposits inIreland has been generated by companies.
The CBI and ECB continue to provide substitute funding for Irish banks which replaces this flight of deposits and Irish banks continue to provide extensive State-backed guarantees on deposits.
So, looking at the deposit figures produced by the CBI. First up is the consolidated picture for all banks operating in Ireland including those based in the IFSC which do not service the domestic economy.
Next up are the 20 banks which do service the domestic economy and include local subsidiaries of foreign banks like Danske, KBC and Rabobank. There is a list of all banks operating in Ireland here together with a note of the 20 that service the domestic economy.
And lastly the six State-guaranteed financial institutions (AIB, Anglo, Bank of Ireland, EBS, Irish Life and Permanent and INBS)
(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 outsideEurope)