Lending to households fell again last month - Central Bank

Monday 31 March 2014 19.00
Mortgage loans fell by €340m over the month in February
Mortgage loans fell by €340m over the month in February

New Central Bank figures show that demand for loans and mortgages continue to decline, with lending to households falling again in February.

Total lending to Irish households fell back to €106 billion in February. Mortgage loans fell by €340m over the month.

The Central Bank said that household loan repayments exceeded drawdowns by €387m in February after a net monthly decrease of €824m in January.

The latest figures show that on an annual basis, lending to households also continued to fall, declining by 3.8% in February, compared with an annual decline of 4.1% the previous month. 

Loans for house mortgages, which account for 78% of total household loans, declined at an annual rate of 3.1%. Lending for consumption and other purposes declined by 6.3% over the year.

Today's figures also show that there was a decrease of €219m in resident private-sector deposits last month. The bank said this was mainly due to a fall in deposits from insurance corporations and pension funds.