Ratings of Irish Banks

Standard & Poors ratings of Irish Banks last September stated that all Irish banks had experienced a rise in their wholesale funding needs, driven by a sustained period

of high credit growth leaving Irish banks with a relatively high reliance upon wholesale funding compared with most banking systems. S&P found that Irish banks were comfortably managing their liquidity requirements while loan growth was expected to slow. While term wholesale funding was scarce, access to interbank deposit markets was sound and there remains some access to most CP markets. Customer deposit inflows (both retail and corporate) were solid. In addition, the ability to pledge eligible mortgage assets with the Central Bank provided a further source of funding. And usage of securitization was more modest than in the UK. Permanent TSB and IIB Bank had the highest reliance upon wholesale funding

At that time average reliance on wholesale funding was 50% for French banks; 66% for German banks; 50% for Italian banks; 55% for Nordic banks; 49% for Spanish banks; 45% for UK banks and 55% for Benelux  banks.

In relation to Irish banks wholesale funding accounted for 44% for AIB, 46% for Bank of Ireland, 36% for Anglo Irish Bank and 65% for Permanent TSB. Customer deposits accounted for 47% of AIB funding, 41% of Bank of Ireland, 64% of Anglo Irish Bank and 35% of Permanent TSB.

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