| Home
Banks in Ireland heavily exposed to property
Netherlands News.Net
Saturday 21st November, 2009
The total lending by Irish banks to the property sector exceeded 60% in the September quarter.
Ireland's central bank said Friday the nation's banks had advanced 61% of their loan books to funding property acquisition and construction.
The bank said loans for the manufacturing sector in the 12 months to the end of September had fallen by nearly 18%.
Ominous for the country's economy, lending to both the property and manufacturing sectors was falling. The third quarter recorded the lowest loans for the previous four quarters.
Property-related loan transactions declined by €3.8 billion during the September quarter. On an annual basis, credit to the property sector dropped by 9% in the 12 months to the end of September.
The bank said total property-related lending fell on a quarterly basis by €4.1 billion in Q3 2009. This compares with a fall of €1.9 billion in Q2 2009. Property related lending was 3.8% lower at end-Q3 2009 compared with end-Q3 2008.
The Central Bank reported total residential mortgages outstanding declined by €380 million in the third quarter of 2009. The combined decline in mortgages for buy-to-let properties and holiday homes, of €623 million, was partially offset by a rise of €243 million in mortgages for principal dwelling houses.  Email this story to a friend
Have your say on this story
|
|
