Yesterday, the Central Bank of Ireland (CBI) released its monthly snapshot of the state of Irish banks focussing on deposits and lending. The data covers the period up to 31st August 2012 and shows that during the month of August 2012, deposits by ordinary households and businesses decreased slightly at the so-called “covered” or State-supported banks – essentially the two pillar banks, Bank of Ireland and AIB, and also Permanent TSB. The decrease of €0.2bn from €105.0bn in July 2012 to €104.8bn in August 2012 continues a trend of stabilising private sector deposits at the covered banks, and over the past year such deposits have increased by €2.6bn. Deposits are now back at May/June 2011 levels though are still €20bn lower than in October 2010 on the eve of the IMF/EU bailout. The CBI monthly commentary on the financial statements is here.
The CBI doesn’t provide an analysis of private sector deposits at the covered banks – about the only analysis it doesn’t provide – but in terms of all banks operating in Ireland including foreign and IFSC banks, Irish household deposits rose by €239m in August, which brings such deposits to €92.2bn. Total deposits from all sources in all Irish banks fell by €12.4bn in August with the main cause being a €13bn decline in deposits from Euro area and rest of world.
The Department of Finance on 20th September published its “Deposits Trends” series for August 2012 which showed, according to the Department “deposits at the Covered Banks fell by rose by €0.3bn (-0.2%) month-on-month to €154.1bn. This still represents an increase of €14.0bn to €154.4bn since reaching a low-point of c. €140bn in July 2011. This demonstrates depositor confidence in the strength of the banking system following its successful recapitalisation last year” These deposits include deposits at overseas branches, in particular at the Bank of Ireland/British Post Office, so they are of limited use, but the trend indicates positive news. The small decrease in the month was due to the strengthening of the euro and on a constant currency basis, deposits actually increased by €0.3bn.
Here is the full set of deposit statistics for the different categories of bank operating in Ireland.
First up is the consolidated picture for all banks operating in Ireland including those 450-banks 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 or “covered” financial institutions (AIB, Anglo, Bank of Ireland, EBS, Irish Life and Permanent and INBS – Anglo and INBS have now been merged to form the Irish Banking Resolution Corporation, IBRC)
(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 ofIreland) 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)
NOTE: THE CBI SOMETIMES MAKES MINOR ADJUSTMENTS TO PREVIOUS MONTH’S INFORMATION, THE DATA PRESENTED ABOVE SHOWS THE FIGURES WHEN THE ORIGINAL FINANCIAL STATEMENTS WERE PUBLISHED