02/06/11: Central Bank Monthly Stats - IRL 6

This is the second post of two covering Central Bank stats for April 2011. The first post (here) focused on Domestic Group of banks. This post deals with Covered Institutions (the IRL-6 banks that are on a life support from the Government).

First up - central bank and ECB lending to banks was broken down into:

• Other assets held by the CBofI - aka lending by CBofI itself to Irish banks - declined from €66.7bn in March to €54.15bn, this mans that mom lending by CBofI fell €12.64bn (-18.93%) and year on year it is now up €40.5bn (+296.8%)
• Borrowing from the Eurosystem (ECB) declined from €79.22bn to €74.23bn - a drop of €4.985bn mom or 6.29%. Relative to April 2010, borrowing increased €38.31bn which almost exactly off-sets increases in CBofI lending, suggesting a transfer of risk from ECB to CBofI
• Total loans to Irish 6 from Euro system and CBofI amounted to €128.4bn in April 2011 down €17.63bn mom (-12.1%). Relative to April 2010, loans increased €78.81bn or 159%.
  

On deposits side:

• Total deposits in IRL 6 have increased from €224.17bn in March to €235.2bn in April an increase of 4.93% mom. Relative to April 2010, deposits are still down €14.07bn or 5.65%
• However, the main driver for these increases were deposits from the Irish Government. Government deposits rose €12.743bn in April (+148.4%) mom and are up €18.566bn (+671.5%) year on year - the very same €18 billion mentioned in the first post.
• Private sector deposits also increased, 1.81% or €1.93bn mom, but remain €20.92bn on April 2010 (-16.2%)
• Monetary institutions deposits dropped €3.63bn mom (-3.32%) and €11.72bn (-9.98%) yoy
  

On lending side:

• Loans to Irish residents fell €6.97bn (-2.2%) mom to €314.14bn. Loans stood at €27.97bn below April 2010 (a decline of 8.18% yoy)
• Loans to General Government were marginally up €47mln to €28.3bn, which means that IRL 6 are the dominant players in lending to Irish Government (as asserted in the previous post)
• Loans to other Monetary Institutions werte down €4.05bn mom (-375%) and
• Loans to Private Sector fell additional €2.97bn (-1.61%) mom and €33.633bn (-15.62%) yoy to €181.71bn.

Lastly, loans to deposits ratios:

• LTDs for all IRL 6 institutions improved by 10 percentage points to 133.56% in April 2011, which represents a decline of 4 percentage points yoy
• LTDs for Private Sector lending fell 6 percentage points in April to 167.9%, an increase of 1 percentage point on April 2010.

In other words, deleveraging over the last 12 months has been led by Government and other financial isntitutions activities, not by private sector pay-down of debt to deposits ratios.