Major increase in deposit rates

Deposit rates across the Irish banks increased in September at their fastest rate for over a year, while banks’ dependency on Central Bank funding has continued to recede.

Figures from the Central Bank, published yesterday, showed a month-on-month decline of €943m in Irish-resident private sector deposits during September. This was largely attributed to a seasonal decline in deposits from non-financial corporations (NFCs).

More significantly, the data showed a 1.8% year-on-year rise in deposit levels, up from an annualised rise of 0.7% in August.