AIB loses €13bn in deposits due to Irish debt fears - The Irish Times - Sat, Nov 20, 2010: "ALLIED IRISH Banks has lost about €13 billion in deposits since the start of the year due to concerns about the financial difficulties of the Government and the banking system, the bank said in a trading statement yesterday.
Some €12 billion of the lost deposits were withdrawn, mostly by institutional and corporate depositors, since the end of June.
The bank admitted tapping “a range of liquidity facilities from central banks, including certain additional marketwide schemes during the period of dislocation within the funding markets”.
An AIB spokesman declined to say how much it had drawn from the Central Bank in exceptional liquidity – where it can borrow using collateral that is not accepted by the European Central Bank.
The bank later said its reliance on monetary authority funding had risen to €27 billion from less than €10 billion at the end of June, while the level of collateral it use to borrow from these sources had fallen to about €11 billion from about €24 billion.
Meanwhile, financier Dermot Desmond said in a speech yesterday that AIB and Bank of Ireland should be sold to overseas buyers as the State struggles to cope with a “financial emergency”."
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