Deposits fall €15bn but Central Bank reliance rises

DEPOSITS held by Irish banks fell by €15 billion to €168.3bn last year, figures released by the Central Bank yesterday reveal.

And the Money and Banking Statistics: December 2010 statistics show that while Irish bank’s dependence on funding from the European Central Bank fell by €2.8 billion to €94.6bn at the end of December, the bank’s reliance on the Irish Central Bank’s exceptional liquidity assistance facility rose to €51bn from €44.7bn at the end of November.

Goodbody Stockbrokers Dermot O’Leary told Bloomberg: “Until we see a stabilisation of deposits, the banks are going to be increasingly dependent on either the European Central Bank or the Irish Central Bank for funding”.