The level of lending to consumers and businesses fell again in October, the Central Bank said today.

The rate of decline in private sector bank deposits also increased to 11 per cent last month, up 0.5 per cent on the figure to the end of September.

The Central Bank report Money and Banking Statistics: October 2011 states that lending to households fell by 3.9 per cent last month.

Mortgage lending has also declined by 2.6 per cent over the last 12 months and the amount being made available for consumption and other purposes fell by 8.1 per cent.

“Household lending fell during October by €614 million, following a net monthly decline of €183 million in September,” the Central Bank said.

“All categories of lending to households declined over the month, with a reduction of €319 million in loans for house purchase being accompanied by falls of €248 million and €48 million in loans for consumption and other purposes, respectively.”

The statistics show that lending to businesses was 1.7 per cent lower than in October of last year. The figure declined by €500 million last month, as good as reversing a €594 million rise recorded in September.

Bank holdings of debt and equity securities issued by the Irish private sector fell by €575 million in October 2011, bringing year-on-year growth in these holdings down to 12.8 per cent.

The Central Bank said household deposits were 4.5 per cent lower on an annual basis in October, having declined by 4.7 per cent in the year to the end of September.

Central Bank support to the Irish banking system increased by €585 million in October to €100.9 billion.

Domestic institutions3 accounted for €71.5 billion of the total following an increase of €365 million during the month.