Lending ‘well below’ long-term level required

The subdued level of bank lending in the economy is leaving the country short of the levels of credit required for long-term sustainable growth, a leading economist has warned.

New figures released by the Central Bank yesterday showed a continuation of the recent trend whereby loans to Irish households again declined on an annual basis.

Household loan repayments surpassed new lending by €346m during July, following a net monthly decline of €163m in June.