Bank lending hits record low
Lending by the country’s banks fell to a record low last month, the latest official figures revealed today.
Statistics from the Central Bank revealed private sector credit continued to plummet in June, with a €1.4bn drop.
The body said lending levels had shrunk 0.7% over the last 12 months, the first annual decline since records began in 1993.
The fall-off was blamed on write downs, better safeguards against risky loans and a more cautious approach to lending by the recession-hit financial institutions.
Last month was not the first to see a drop in lending but the rate of decline has eased from the €1.6bn fall-off in May and €1.8bn in April.
The Central Bank said the value of mortgages given out dropped by €62m in June marking the third fall in three consecutive months.
The annual rate of growth in mortgage lending fell to a record low of 1.9% last month.
The Central Bank said mortgage debt has remained relatively stable since the start of the year, with an increase of €234m, compared with a €5.5bn rise in the same period last year.
