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 28th September 2012 and shows that during the month of September 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 €104.8bn in August 2012 to €104.6bn in September 2012 continues a trend of general 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 doesn’t appear to be available yet.
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 €373m in September, which brings such deposits to €92.6bn. Total deposits from all sources in all Irish banks rose by €1.2bn in September with a €6bn increase in deposits from the Euro area offsetting declines elsewehere.
The Department of Finance on 18th October published its “Deposits Trends” series for September 2012 which showed deposits at the Covered Banks fell by €0.8bn (-0.5%) month-on-month to €153.3bn. This still represents an increase of €13.0bn 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 Department says the decline in September is attributable to “business as usual outflows”
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 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)
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
@ NWL,
Off Topic (but relates to one of the banks mentioned)
What’s the craic with AIB pumping 1 billion into it’s staff pension fund? Although it was covered in the media as Fat Cat ex bosses get huge pensions, it seems like a scandal that AIB can transfer money at the same time as it is being bailed out to the tune of billions. Interesting to compare to Aer Lingus at present.
I was kinda thinking that this it the type of thing you’d do a blog post on.
Link to article: http://www.independent.ie/business/irish/aib-uses-pension-bailout-to-pay-exchiefs-up-to-500k-3279532.html
“AIB plugged a hole in its pension scheme in August by handing €1.1bn of loan assets to its pension pot.”
@Ahura, these matters have largely been dealt with before, we are paying AIB staff 5-6 weeks for each year of service with redundancy. Remember the workers at Vita Cortex who couldn’t get 2.9 weeks? Most of the E1bn shovelled into the pension fund is similarly to provide pensions to staff. It seems that it is only the super pensions that have grabbed the headlines, but most of the E1bn is for bread-and-butter pensions.
@NWL
“but most of the E1bn is for bread-and-butter pensions”
This is correct to a point. But the reality is that those on the largest final salaries benefit the most. Those are invariably the top people (or people close to retirement) , who despite only being at the top for a small number of years, get their pensions on those final years.
In fact, pensions over the years have disproportionately benefited those at the top, to the point whereby a 65 year old executive can get a full pension today and tomorrow a 64 year old who has paid all his life into the fund, gets nothing.
It is one of the great scandals that nothing has been done to change such legislation. A good solicitor would surely make life very uncomfortable for many of the trustees who ran those schemes.
The bank schemes were completely underfunded, so why did Sheehy, Doherty, etc etc walk away with full pensions. They may have done so according to pension law, but by what law of equity did they do so.
What exactly is the role of pension trustees.
Like Ahura, I would welcome a post on this.
From my perspective, any person who contributes to a defined pension fund at present, is bonkers, unless they expect to get out before the schemes collapse.
@Joseph/Ahura, I will get a blogpost up in the next day, was hoping the transcripts of the hearings would be available by now. We don’t yet know the pension position with Anglo/PTSB/Irish Life/INBS and potentially EBS unless there is a joint AIB/EBS pension scheme.