Bank lending to households falls

OVERALL bank lending levels to Irish households fell by almost 5% in November according to new figures from the Central Bank while the amount the banks, themselves, borrowed from Europe increased.

Last month’s 4.8% year-on-year credit decline followed a 4.9% fall in October. The latest monthly credit statistics also show a 1.7% annualised fall in mortgage lending levels, for November, while loans for assorted other purposes were down by 15.6% on the same timescale.

According to the Central Bank’s latest commentary, the net flow of household lending during the month of November was down by €193m, with mortgage lending values down by €212m. In terms of deposits, meanwhile, Irish households held 4.5% less money on deposit with the banks than at the same point last year.