With Christmas beckoning, Irish households withdrew €1 billion more than they lodged at banks last month, according to new figures published by the Central Bank.
However, while bank deposits declined in November, in annual terms, household deposits rose by €1.9 billion or 2 per cent.
The latest Central Bank data also show the increasing popularity of point-of-sale debit card transactions, which rose by over €50 million to €2.9 billion in November compared to the same month a year earlier.
Loans to households declined by 2.8 per cent versus the same month a year earlier, with mortgage draw-downs, which account for 83 per cent of all on-balance sheet household loans, down €150 million in November.
In year-on-year terms, mortgage loans declined by 1.6 per cent, with households repaying almost €1.2 billion more than was advanced in funding during the year.
Consumer credit
Non-housing loans were down €12 million in November and fell by 0.7 per cent on an annual basis. However, consumer credit recorded strong growth of 4.1 per cent in year-on-year terms.
Irish households continued to be net funders of the banking system for the 17th consecutive month, with banks holding €6.8 billion more household deposits than loans at the end of November. By contrast, in early 2009 household loans exceeded deposits by €53.5 billion, the Central Bank said.
Lending to non-financial corporations slipped by €2.5 billion or 5.1 per cent, in annual terms last month, with deposits down €237 million in November. In annual terms, deposit flows grew by 5.6 per cent during the month.
Outstanding loans to the Irish private sector declined by 3.7 per cent on an annual basis, the figures show.
