Irish banks ECB borrowings rose 13.7pc
DUBLIN: Irish domestic lenders increased their reliance on European Central Bank funding by 13.7 percent in November, as the state applied for an international bailout.
The ECB funding reliance of domestic lenders, including Irish and foreign-owned retail banks, rose by 11.7 billion euros ($15.5 billion) to 97.3 billion euros from the end of October, according to an emailed statement from the Irish central bank today.
The overall ECB dependence of Irish-based credit institutions, including internationally focused banks with operations in Ireland, increased by 8.2 billion euros to 138.2 billion euros in the period.
That's higher than the 136.4 billion euros of ECB borrowings that the central bank previously reported as of Nov. 26.
Ireland was forced to apply for an 85 billion-euro emergency-aid package last month, of which as much as 35 billion euros is aimed at recapitalizing the debt-laden banking system.
The country's lenders have become increasingly dependent on ECB funding this year amid outflows of deposits and volatility in wholesale funding markets.
Allied Irish Banks Plc, the nation's second-largest bank, said Nov. 19 its deposits had dropped by 13 billion euros, or 17 percent, from the start of the year. Anglo Irish Bank Corp. Chairman Alan Dukes said on Nov. 25 that the bank, which was nationalized in January 2009, lost about 12 billion euros of deposits this year.
Bank of Ireland Plc, the country's largest lender, said Nov. 12 it was reliant on "monetary authorities" for 20 billion euros of funding, compared with 8 billion euros at the end of June.
The I r i s h central bank r e por t t oday a l s o s howed t hat l ending t o households fell 4.8 percent i n November from a year earlier, followi ng a s i mil a r de c l i ne i n October. - PB News