Emergency funding to Irish banks from the European Central Bank has dropped almost 38 per cent over the past year, from €85.1 billion in March 2012 to €53.1 billion last month.

Irish banks’ dependence on the funds continued to fall from €61.9 billion in February to €53.1 billion in March, according to the latest figures from the Irish Central Bank.

The fall in ECB funding comes as Irish banks reduce their reliance on emergency funds by shrinking their balance sheets.

The amount of money on deposit in Irish banks from non-euro area residents in euro rose 30.5 per cent last month, from €1.3 billion in February to €1.87 billon.

Securities of other euro area residents in euro also increased from €51 billion to €63.6 billion in March.