2/1/2015: Irish Banking System: Still Reliant on Non-Deposits Funding

A handy chart from Deutsche Bank Research on sources of funding - focusing on deposits - for euro area banks.

Irish banks are an outlier in the chart, with domestic household and Non-Financial Companies deposits forming second lowest percentage of banks' funding in the entire euro area. As of Q3 2014, Irish banking system remains less deposits-focused and more funded by a combination of other sources, such as the Central Banks, Government deposits and foreign/non-resident deposits.

And the dynamics, post-crisis, are not impressive either: since the onset of the Global Financial Crisis, there has been lots of talk about increasing reliance on deposits for funding banking activities. Ireland's extremely weak banking sector should have been leading this trend. Alas, it does not:

21/5/2014: Irish Credit Supply to Cash Ratios are Heading South, Still

Irish Central Bank and Government departments have been pushing hard to convert Irish economy into cashless, electronic accounting data storehouse, where everything gets counted and taxed (at least in theory).

Meanwhile, in Ireland's real economy, cash remains the king as the only metric of money supply still expanding in the deleveraging hell gripping the financial system:

To remind you: in Q4 2013, Irish private households' deposits fell to their lowest point since March 2009 (note, this makes them the lowest since around Q3 2005 as current figures reflect addition of the Credit Unions deposits to the dataset (they were not counted in until January 2009).

That's right... let's do away with cash so Irish banks deposits get another superficial (accounting) boost and few million worth of tax euros flows into the state coffers. Happy times all around... we know Irish households are getting richer and richer by day...

9/2/2012: Interesting chart on Euro area deposits

Here's an interesting chart from Credit Suisse via zerohedge:

Now, it's not the blue line that worries me and the others (EAP5=Euro Area Periphery states or PIIGS). It's the massive dip in the grey line. Given there's little deleveraging of consumers and corporates in France and Germany and that there is little it terms of concerns for stability of German banks (whether or not this sense of security is justified or not), the chart suggests that deposits are flying out not just in fear of local banks risks, but in fear of the euro risks.

The link to zerohedge post is here.