September: Loans in Ireland decline by 1.6%
Whilst bank loans provided to households for general purchases in September declined by a whopping 14.8% over an annual basis in September, lending for house purchases fell by 1.6%.
The Central Bank statistics for September stated that the annual overall change in loans to households was -4.5%.
The net monthly uptake of loans has been negative every month so far in 2010, highlighting a trend towards saving, which have risen sharply in 2010. They also point towards loans being much harder to get for consumers, with more stringent credit rating criteria and banks that are loathe to lend as present whilst still trying to balance their books.
The days of consumers with “bad credit” being able to get a loan are still long away it seems.
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