Banks continue deleveraging as deposits rise and loans shrink

Irish domestic banks continue to deleverage as deposits increased and loans shrank over 2012, according to the latest Central Bank statistics.

In the years leading up to the implosion of the financial sector in 2008, Irish banks had massively inflated loan-to-deposit ratios.

According to the terms of the bailout deal, the banks were ordered to reduce these ratios from an average of 175% down to 122.5% by the end of 2013.