2/02/2011: Irish termed deposits and credit cards

In the previous two posts I updated data on credit and deposits levels and flows. In this post, let's tidy up by taking a look at deposits by maturity and credit cards.

First deposits by maturity:
Clearly, longer term maturity is exiting, medium term maturity deposits are now shrinking as well, while short term maturity deposits remain steady. This suggests that

1. Irish depositors are exiting Irish banks when longer term savings mature;
2. Irish pool of savings available for investment - remember, banks can more safely lend out of longer maturity deposits than out of shorter maturity ones (lower risk of maturity mismatch) - is also shrinking.
3. Overall, overnight deposits have increased 2.11%mom in December 2010, but fell 4.35% yoy
4. Up to 3 months deposits fell 4.33% in December 2010 mom and 2.77% yoy
5. Up to 2 years deposits fell 9.64% mom and 17.32% yoy.
   

Not very good trends.

On credit cards, the picture is What the data suggests is:

• Irish credit cards balances are declining, but this decline is relatively mild - down 0.81% mom in December 2010 (latest data) and -6.28% yoy.