The last 8 months have been a nightmare for the deposit wings of the 6/4 Irish deposit gathering sections in the Irish banks.
A run started in 4 of the 6 Irish banks started in July 2010 (Anglo and INBS have been loosing deposits at an elevated 70%+ level over the last 3 years pre-'auction') and then got worse, and then got even worse, and then descended into a retail deposit flight in November 2010. December 2010, post IMF arrival, saw deposits continue to fly out of the Irish banks at an alarming rate.
So what happened in January 2011? NamaWineLake, as ever, has some great analysis here: http://namawinelake.wordpress.com/2...h-banks-still-ongoing-but-apparently-slowing/
How much longer can this continue? How much longer can the ECB/CBI prop up these deposit losses? With speculation regarding a looming Irish sovereign default increasing, do Irish banks risk a final terminal deposit flight?
A run started in 4 of the 6 Irish banks started in July 2010 (Anglo and INBS have been loosing deposits at an elevated 70%+ level over the last 3 years pre-'auction') and then got worse, and then got even worse, and then descended into a retail deposit flight in November 2010. December 2010, post IMF arrival, saw deposits continue to fly out of the Irish banks at an alarming rate.
So what happened in January 2011? NamaWineLake, as ever, has some great analysis here: http://namawinelake.wordpress.com/2...h-banks-still-ongoing-but-apparently-slowing/
- Another 20,000,000,000 EUR in deposits was taken out of the 6 Irish banks in Janaury 2011.
- It appears that deposits continue to flee at an elevated level and the January 2011 declines were above the average monthly decline for the previous 12 months, although slower than December 2010.
- It is likely that the decline in deposits will be filled with emergency liquidity assistance from the CBI or extraordinary measures by the ECB.
How much longer can this continue? How much longer can the ECB/CBI prop up these deposit losses? With speculation regarding a looming Irish sovereign default increasing, do Irish banks risk a final terminal deposit flight?