herald

Friday 15 December 2017

finance

Lending falls as we hoard cash

THRIFTY Irish households continue to hoard their spare cash and seek fewer bank loans, new figures indicate today.

The Central Bank statistics show that lending to households dropped by €632m during April, "following a net monthly flow of €167m in March".

"Developments in April were largely driven by a decrease in loans for consumption purposes of €394m," the Bank said.

"Loans for house purchase and other purposes also decreased by €188m and €51m respectively," it added.

Lending to the non-financial corporate (NFC) sector declined by 1.8pc in the year ending April, following an annual drop of 2.2pc in March, 2012.

Loans to NFCs went down by €326m during April, following an increase of €153m in March, the Central Bank statistics show.

The figures also show that there was a month-on-month increase of almost €4bn in Irish resident private sector deposits during April.

"This largely reflected developments in deposits from the OFI (Other non-bank Financial Intermediaries) sector, which rose by almost €3.4bn during the month."

"The covered institutions accounted for the majority of this increase," it said.

NFC deposits also increased by €291m, while household deposits decreased by €104m, the Central Bank said.

The figures also indicated major changes in deposits in Irish financial institutions as the euro crisis continues.

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