Lending to households and business fell again in October, the latest figures from the Central Bank show.

Loans to households last month fell at an annual rate of 4.9% after a fall of 4.5% in September. Lending for mortgages fell by 1.6% on an annual basis.

The figures show that households loan repayments have exceeded new lending by €7 billion in the first ten months of this year.

The Central Bank says that lending to businesses declined by 5.2% in October from the same month last year after a fall of 3% in September.

The figures also show that the domestic Irish banks' borrowings from the European Central Bank increased by €2.7 billion in October, bringing the total borrowed to €85.7 billion.

Bloxham economist Alan McQuaid said there wasvery little good news in the latest figures from the Central Bank and with no sign that the trend will change any time soon.

'Until the banking sector crisis is fully resolved and things improve on the labour market front then the supply/demand for credit will remain subdued in our view', he said.