Deposits at Irish banks stable in July, while ECB funding declines

Monday 26 August 2013 19.10
Deposits at Bank of Ireland, AIB and Permanent TSB increased in July by €0.1 billion to €152.1 billion
Deposits at Bank of Ireland, AIB and Permanent TSB increased in July by €0.1 billion to €152.1 billion

Deposits held by Irish banks remained stable between June and July and their dependence on European Central Bank funding eased further, the Finance Department said today.

Deposits at Bank of Ireland, AIB and Permanent TSB increased month on month by €0.1 billion to €152.1 billion.

The level of deposits were down from €154 billion a year ago but higher than a low of €140 billion in July 2011.

A statement from the department said that, as expected, it continues to see an ''insignificant'' impact on deposit volumes in the covered banks as result of the ending of the Eligible Liabilities Guarantee (ELG) scheme in March.

A large outflow of deposits before Ireland's bailout in 2010 left the banks dependent on the ECB for funding but that reliance has fallen over the past two years and dropped 2.6% to €33.9 billion between June and July.

The domestic banks accounted for around 4.2% of total ECB funding at the end of last month compared to a peak of some 18.8% over two years ago, the Finance Department said.