Deposit Trends at Irish Banks Post author By Philip Lane Post date December 13, 2011 The Department of Finance has released an information note here. Categories In Uncategorized 7 Comments on Deposit Trends at Irish Banks ← More Fiscal Arithmetic → INET Interview with Stephen Kinsella 7 replies on “Deposit Trends at Irish Banks” On the face of it, the situation would appear to be better than many suspect is happening (the so-called ‘quiet run’) in the EZ at this time. I keep hearing about money moving to Sweden, Switzerland and Asia. It can’t all be coming from Greece. Agree with PR Guy, I’m a little surprised also. , it is important to bear in mind that there is a relatively small quantum of deposits from overseas based corporate and non-bank financial customers left in the covered banks due to their current (lowered) credit ratings. That money above has already left, also hearing of money moving to dollar. @myself “It can’t all be coming from Greece.” Perhaps some of it is coming from Germany? I hear Commerzbank people are in deep discussions with German Government people today. As helpful as the technical note is, it merely confirms a reporting deficit by the CBI, namely “Table A1 from the CBI provides further analysis of this Private Sector deposit category at the Aggregate (or system) Balance Sheet level (A4). It contains a useful breakdown of the underlying deposit transactions that took place each month. These transaction data are the best guide to deposit flows each month as they strip out foreign exchange movements, changes in reporting population etc. In October this series showed a rise of €583m during the month. Unfortunately these transactions data are not available for deposits figures reported in the other balance sheet tiers such as the Covered Group.” Yes very “unfortunate” indeed. There are various views on how we can see the Irish banking system returning to stability and hopefully health. The one metric selected on the NWL blog is ordinary household and business deposits in the covered banks. The reason for this view, is the separate view that we can only have a stable banking system when ordinary Irish businesses and households have both the cash AND the confidence to place their deposits in Irish (read “covered”) banks. Whilst the CBI machine-guns us with information every month, it pointedly doesn’t provide the above information, so “commentators and observers” are left using the “private sector” unconsolidated figure for covered banks as the best approximation. I note the CBI will be publishing a quarterly report with consolidated figures in more detail for the covered banks, that is to be welcomed; it would be even more welcome if some of the lardarses on Dame Street put down the sports section of their newspapers and produced the information on a monthly basis. @ Jagdip Looks like your services may be required in China. http://www.latimes.com/business/la-fi-china-housing-bubble-20111213,0,3429813.story Apparently they are going to have a soft landing too. Still waiting for a proper breakdown of the 17 billion securitization thingy between sep / oct. Me thinks schmucks are paying good money on dodgy mortgage paper that may not even have proper ownership title. And the guys who bought this debt are hoping to get some margin on this “investment” until the mortgage payers eventually start to blow their brains out in their nice attics. I could be dead wrong given I am a Dork & All but a detailed paper on what or where this 17 billion is may restore confidence for some. Just saying this stuff was securitized and leaving it like that strikes me as very suspect and does not fill me with confidence. This delevearging of indivdual banks is good by itself but if the dead debt is still getting repaid somehow – it extracts from future consumption & investment………… and given these banks still function in the real economy……….. kind off anyway. No Faith. @jagdip They say inadequate management information is the most obvious signal that you are looking at incompetent management. Do you suppose they have failed to realise the importance of the info, or have decided to withhold it? Comments are closed.