Bank lending continues to plunge

LENDING by the country’s banks continues to plunge, while the level of deposits continues to fall.

Figures from the Central Bank show the rate of lending decline even quickened slightly, with consumer lending falling 4% in the year to August while business lending dropped 2.5%. Mortgage lending was down 2.4%, while lending for other purposes fell by 9.1%.

Deposits from households, businesses, financial institutions and pension funds also fell in August at an annual rate of 10.4%, the same as in July.