Central Bank was aware of deposit

THE Central Bank knew about the huge inflow of funds into certain Irish banks last September as the banking crisis erupted.

In its October 2008 statistical bulletin the bank noted the outflow of Irish resident deposits were offset “by large deposits from financial companies in September, which were withdrawn in October”.

While no bank is identified, the comment makes clear the Central Bank was aware that some financial institutions had injected substantial funds into other Irish banks over that period.