Total lending by credit institutions in Ireland to the Irish public increased by €4.9 billion in the month of March.
Figures released by the Central Bank today indicate the 2.4 per cent lending increase brings the total lending by institutions to €210.8 billion.
Despite the increase, the pace of credit growth in Ireland slowed in March for the first time since August 2004, with the year-on-year increase in private sector credit (PSC) falling back to an underlying rate of 25.4 per cent from 26.9 per cent in February.
However, residential mortgages expanded by €1.5 billion in March following two months of relatively weak demand. The underlying growth rate continued to ease, however, and fell marginally to 25.8 per cent from a revised 26 per cent in February . It is now some two percentage points below its 2004 peak of 27.8 per cent in July.
The greatest growth was seen in term/revolving loans which increased by €2.4 billion. There was also a significant increase of €449 million in lending to non-bank IFSC companies, the largest such increase since the same month last year.
However, non-mortgage credit once again accounted for most of the monthly increase in PSC, with non-financial corporations driving demand.
Loans up to and including one year rose by €839 million, other mortgages expanded by €123 million; and overdrafts rose by €115 million.