Demand for private-sector credit remained strong in October, with the underlying year-on-year growth rising to 25.2 per cent from 24.9 per cent in September.
Since mid-2004 private sector credit has been expanding at an annual rate of around 25 per cent.
Credit growth of this magnitude was last seen in 2000. However this was at the zenith of the Celtic Tiger when the economy was growing at a 10 per cent, twice the current growth rate.
While residential mortgage lending remained robust, with a rise of €1.4 billion during October, for the first time in several months it accounted for less than half of the overall increase in private sector credit.
The rise in non-mortgage lending was driven by term/revolving loans and brought its year-on-year growth up to 21.5 per cent to €1.3 billion in October, compared to 21.1 per cent in September, and 20.4 per cent in August.
The underlying growth rate of residential mortgage lending was virtually unchanged at 27.3 per cent in October compared to 27.4 per cent in September.
Total lending by credit institutions increased by over €3 billion or 1.6 per cent to €190.7 billion in October.