Lending to households continued to fall in November, according to figures from the Central Bank, as consumers maintained a trend of paying down debt and increasing savings.
There was a 4.3% fall in loans to households in the year to November, according to the Money and Banking Statistics, while the amount repaid during the month was €403 million higher than the value of drawdowns.
Meanwhile the value of deposits held by the Irish resident private sector, as defined by the Central Bank, was up 8.5% in the year to November.
The amount deposited during the month itself was down €322 million, however, primarily driven by a sharp fall in household deposits.
In a research note on the figures, Merrion Stockbrokers’ economist Alan McQuaid said data around credit remains “the most disappointing as regards Ireland’s recovery story.”
He said the figures showed little real progress being made in the number of loans to households or the SME sector, which would hamper the country’s recovery prospects.