CENTRAL BANK:Irish banks continue to pull back on foreign lending, with Central Bank statistics published today showing that levels fell by 4.6 per cent or €6.2 billion to €127 billion in the second quarter of 2012.

According to the Central Bank, the reduction is expected given that the domestic banking groups are downsizing their operations abroad and disposing of overseas units.

The decrease was largely due to a decline in claims on the UK private sector. This sector accounts for by far the largest share of domestic banks’ claims, with private-sector residents of the US also accounting for a significant proportion. France, Spain and Germany continue to hold a sizeable share of the foreign claims, although they declined by a collective €877 million over the quarter.

The Central Bank of Ireland yesterday published updated statistics that detail the claims of the domestic banks on non-residents, by counterpart country and sector on an ultimate risk basis.