As the Deputy is aware Anglo Irish Bank is being run on an arms length commercial basis. A breakdown of the deposits from banks is contained in Note 20 to the Interim Accounts for the six months ended 31 March 2009 entitled "Deposits from Banks". It would be inappropriate for me to comment beyond what is published in the accounts, because of the possible commercial sensitivity of the information.
I set out below the relevant note to the accounts for your information.
Deposits from banks
|
31 March 2009
|
30 September 2008
|
31 March 2008
|
|
€m
|
€m
|
€m
|
Repayable on demand
|
389
|
691
|
636
|
Sale and repurchase agreements
|
27,680
|
12,397
|
5,313
|
Other deposits by banks with agreed maturity dates
|
2,409
|
7,365
|
5,682
|
|
30,478
|
20,453
|
11,631
|
Sale and repurchase agreements include €23.5 billion (30 September 2008: €7.6 billion; 31 March 2008: €3.6 billion) of short term borrowings from central banks. These deposits include €13.5 billion (30 September 2008: €7.6 billion; 31 March 2008: €3.6 billion) borrowed under open market operations from central banks and €10.0 billion (30 September 2008: €nil; 31 March 2008: €nil) borrowed under a Master Loan Repurchase Agreement ('MLRA') with the Central Bank and Financial Services Authority of Ireland. The interest rate on this facility is set by the Central Bank and advised at each rollover, and is currently linked to the European Central Bank marginal lending facility rate. Collateral assigned under these agreements is derived from the Bank's customer lending assets (note 17).
During the period the Group increased the level of assets eligible for open market operations, primarily through the establishment of Anglo Irish Mortgage Bank and through the expansion of the Group's covered bond and CMBS programmes.
The decrease in other deposits by banks with agreed maturity dates is attributable to a reduction in interbank activity due to Bank specific concerns. In addition, €1.4 billion of term bilateral loan agreements were repaid following the nationalisation of the Bank as a result of change of control covenants within those loan agreements.