BANK DEPOSITS:IRISH HOUSEHOLDS continued to withdraw cash from banks as deposits fell again in the second quarter, according to new figures from the Central Bank.
Deposits held by Irish households at credit institutions fell €525 million, or 0.6 per cent, in the second quarter of the year, but at a slower rate than in the previous quarter, when €1.6 billion, or 1.8 per cent, in deposits were withdrawn. Deposits at the banks fell 5.7 per cent, or by €5.3 billion, over the year to the end of June, compared with 6.1 per cent for the 12 months to the end of March.
Loans to buy houses fell 0.6 per cent in the second quarter of the year – the sixth quarterly decline in a row – which brought the level of house purchase loans at the banks to €98.3 billion at the end of June. There was a 2.2 per cent drop in house loans over the year.
Total loans advanced to households was €121.4 billion at the end of June, down 1.1 per cent over the second quarter of the year and 3.1 per cent over the 12 months.
Home loans accounted for 74 per cent of total loans provided for house purchases at the end of June, with buy-to-let representing 25 per cent and holiday or second homes accounting for 1.1 per cent.
Almost 69 per cent of €24.5 billion in buy-to-let loans are on tracker interest rates, compared to 60 per cent of home loans. Outstanding loans provided to buy homes fell by €531 million in the second quarter, and for buy-to-let properties by €58 million.
Personal loans fell by 6.3 per cent over the year to the end of June, down from 7.9 per cent for the 12 months to the end of March.
Total personal loans stood at €23 billion at the end of June, accounting for 19 per cent of all lending to households. These loans have declined by 23.8 per cent from a peak in the first quarter of 2008.
