Data shows deposits fleeing Irish lenders

IRISH banks suffered a near €3bn (£2.6bn) outflow in deposits in October, reversing two months of inflows, as the deepening Eurozone debt crisis spooked some savers, central bank data showed yesterday.

Irish banks, including local units of foreign banks, had nearly €350bn in deposits from residents and non-residents at the end of October compared to €352bn at the end of September.

Data for just the Irish-owned lenders – Bank of Ireland, AIB and Permanent TSB -- showed that deposits had risen by €1bn to €266bn in October.

The annual rate of deposit decline in Ireland ticked up to 11 per cent in October from 10.5 per cent the month before, as insurers and pension funds upped their withdrawals.

Irish consumers, companies and pension funds have been withdrawing cash from Irish-based banks for the past year, though the rate of decline in household deposits eased to 4.5 per cent year-on-year in October after falling 4.7 per cent in the previous month.