Borrowing up by €5.6bn last month
Private-sector credit growth has been strengthening in recent months, the latest data from the Central Bank shows. This trend continued in October, with year-on-year growth rising to an adjusted rate of 29.4% from 28.6% in September.
Private sector credit rose by €5.6bn during October, with non-mortgage credit accounting for about two thirds of this increase.
When lending to IFSC companies is excluded, this was the largest monthly rise in PSC since March 2004.
Nearly €3bn of this increase was accounted for by loans up to and including one year and term/revolving loans.
Non-mortgage credit growth has been particularly strong over the last 12 months, accounting for 64% of the annual change.
The annual adjusted growth rate in non-mortgage credit rose to 29.9%, from 28.7% in September, and was higher than the overall growth rate for the second month in a row.
Demand for housing finance remained strong in October, when residential mortgages (adjusted for securitisations) grew by a further €1.8bn. This is lower than the €2bn increase recorded in September, but is the fourth highest monthly increase on record.
The six-month moving average of monthly changes in residential mortgages reached its highest ever level in October at €1.9bn.
The adjusted year-to-year change in residential mortgages increased to 26% in October, from 25.8% in September.
