Irish banks borrowed €39.4bn from the European Central Bank in 2007. This is 45% higher than the total amount borrowed in 2006.
The ECB regularly lends money to financial institutions in order to improve liquidity. Some Irish financial institutions use the ECB facility on a regular basis to finance part of their balance sheets, using their residential mortgage assets as collateral. All banks regard the facility as a continuous source of funding.
Borrowing by Irish banks from the ECB in 2007:
- EBS – €2.3bn
- Irish Life & Permanent – €5.3bn
- Bank of Ireland – not disclosed
- AIB and Anglo Irish Bank – no borrowing