Ir­ish banks ECB bor­row­ings rose 13.7pc

The Pak Banker - - Company& -

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

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