Credit growth rates above clearly show the following trends:
- Household loans rate of contraction has accelerated from 4.8% yoy in October and November to 5.2% in December. Thus December 2010 marked the worst month in the entire series history since 2004.
- Rate of decline in mortgages lending was also accelerating to 1.9% in December from 1.7% in November and 1.6% in September and October.
- Rate of decline in credit for non-financial corporations eased in December to 1.6% yoy from 2.4% in November.
The chart above shows:
- A dramatic exist from Irish banks by non-financial corporate deposits. This flight is accelerating - having gone from -9.2% yoy fall in July, to -13.1% in August, -14.8% in September, -15.4% in October, -14.9% in November and a whooping -16.1% in December.
- Household deposits are also accelerating in the rate of decline from -2.4% in October to -4.5% in November and -4.7% in December
Now, let' remove this 'hump' and see what the banking sector deposits really look like today:
The chart abvoe does exactly this. And it clearly shows that:
- Over 2010, Irish households have suffered a loss of savings, not a gain, pushing our deposits to the comparable level of December 2007
- Over the entire crisis total private sector deposits have fallen to the levels comparable to those in May-June 2006.