Savers holding over €100bn

IRISH savers now have €16 billion more sitting in bank accounts than at the height of the SSIA-era.

There is between €104 to €106 billion in household savings in Irish bank accounts, according to the director of business banking with Bank of Ireland Mark Cunningham.

He said when it comes to an assessment of the Irish economy it is things like this that outside observers will look at and think that the economy is sound.

“The savings ratio in Ireland has ballooned. Before people were saving around 2 cent for every euro they earned, now they are saving 12 cent of every euro,” he said.

He also said that Ireland is unique in that it has €24bn in the National Pensions Reserve Fund.

“These are key features that are being overlooked in the panic,” he said.

Mr Cunningham was speaking at the annual ISME conference yesterday, where he came under fire from small firms who are struggling to get credit from banks.

He also said that the banks would have to pass on the elevated cost of borrowing if the situation don’t turn around.

“If the price of oil goes up it is passed on at the pumps,” he said.

He said, however, there are signs of borrowing costs coming down.