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Deposits in covered banks stable in August

Deposits held in banks covered by the state's guarantee remained stable at €154 billion in August, according to the Department of Finance.

The figure fell by 0.2% but that drop is due to exchange rate movements. Adjusted figures, allowing for exchange rate movements show underlying deposits grew by €0.3 billion.

In the year to the end of August covered bank deposits have increased by €7 billion, and increased by €14 billion since the low point of around €140 billion in July 2011.

AIB, Bank of Ireland and Permanent TSB further reduced their use of eurosystem funding in August, down €0.4 billion to €61 billion, a fall of 34% from the peak of €93 billion in January 2011.

In a European context, the Department of Finance said that Ireland now accounts for 5% of eurosystem funding down from a peak of 18.1% in December 2010.