Lending to households falls 4.5%

The latest Central Bank figures show that domestic banks and households continue to deleverage, with mortgage and business lending falling and deposits increasing.

Total lending to households was down 4.5% over May. There was a 2.1% drop in mortgage lending and a 11.5% fall in consumer loans over the same period. Loan repayments exceeded drawdowns by €507m over May, following a net decrease of €631m in April.

“The declining level of lending at a time when there is a strong and growing demand for mortgages is indicative of a seriously malfunctioning banking system,” said Rachel Doyle, chief operations officer at the Professional Insurance Brokers Association (PIBA).