Deposits continue to grow at Irish banks

Deposits continue to grow at Irish banks

Deposits have risen at Irish banks

Deposits at Irish banks continued to grow in July, according to figures published by the Department of Finance.

Deposits have increased by €14.3 billion to €154.4 billion since reaching a low-point of approximately €140 billion in July 2011.

The Department said: “This demonstrates depositor confidence in the strength of the banking system following its successful recapitalisation last year.”

The data shows that deposits at the banks covered by the Government guarantee scheme rose by €1.5 billion or 1% month-on-month to €154.4 billion.

The cumulative growth since the start of the year is around €7.3 billion or 4.9%.

The Department noted that while the growth to July is positive, currency exchange movements and the weakness of the euro against sterling continues to account for growth in non-euro based deposits.

The data showed that the usage of Eurosystem funding by AIB, Bank of Ireland and Permanent TSB reduced further in July 2012 which, it said, reflected “the continued progress that is being achieved by the banks in terms of deleveraging and deposit gathering.”

The Finance Department said these figures demonstrate the progressive strengthening of the domestic banking system.

The funding peaked at approximately €93 billion in January 2011 and has since reduced by €32 billion to €61 billion.

Ireland’s share of total Eurosystem funding has declined steadily from a peak in December 2010 of 18.1%, immediately after the bailout.

The Irish banking system now accounts for around 5% of total Eurosystem funding.

There is 1 comment for this article
  1. owen at 11:48 am

    WOW what an interesting statistic which according to the law of averages is the equivalent of € 34k for every living man, woman and child in Ireland (pop 4.5mio).

    Just how many average Joes are there out there with € 34k on deposit?

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