Belfast Telegraph

Bailout banks boosted by deposits

By Laura Noonan

Bailed-out banks gained almost €1bn (£0.8bn) of ordinary Irish deposits at the expense of foreign lenders in December, new figures reveal.

The boost marks the first time the 'covered' banks' deposit performance has been significantly better than that of other lenders with retail operations in the Republic.

But analysts last night stressed that the overall state of bailed-out banks' deposits could best be described as "stable" and that there was no evidence vast sums were flowing into the Irish banks.

The latest data shows that Ireland's bailed-out institutions saw their overall deposits drop by €29bn (£24bn) in 2011, leaving the banks with €154.5bn (£129bn) of customers' cash remaining on their books.