As predicted under the FDR Framework, in the absence of current asset and liability-level disclosure, investors continue to doubt the solvency of the Irish banking system. The Irish Times ran an article on the ongoing deposit drain occurring in the Irish banking system.
Ireland's borrowings from central banks rose in June as deposits continued to flow out of the country's financial system.
Irish lenders borrowed €103 billion from the European Central Bank last month, compared with €102.3 billion in May.
... "These numbers confirm that the pressures continue in terms of the Irish banking system even if the intensity of the problem has eased somewhat in recent months," said Austin Hughes, chief economist with KBC Bank.
"The change in June is not marked because most of the footloose deposits have already left the system."
... Ireland's banks are reliant on central bank loans to fund their day-to-day operations due to tens of billions of euro in deposit outflows and their exclusion from interbank lending markets.
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