Bank lending continues to decline

Bank lending to businesses and households continues to fall across most categories as the deleveraging process continues.

According to the latest Central Bank statistics, mortgages and household consumption lending were both down. However, deposits continue to rise.

During the boom years, Irish banks grew their balance sheets much quicker than their deposit books. Consequently their loan to deposit ratios ballooned to unsustainable levels. Over the past few years this has seen a huge run-down in loan books as they attempt to increase the size of their deposit books.