In this week’s Public Policy Bulletin, read about the Central Bank of Ireland’s SME statistics for Q4 2021, findings of a recent industry pension survey, the introduction of a new European pension savings regime and the Central Bank warning on investing in crypto assets. We also cover the latest Labour Market Report and Index of Services Bulletin from the Northern Ireland Statistics and Research Agency.
Central Bank of Ireland releases Q4 2021 SME and Large Enterprise Credit and Deposits statistics
Recently released statistics from the Central Bank of Ireland show gross new lending of €1.1 billion to SMEs in the final quarter of 2021, the highest level of quarterly lending seen in 2021. While this is an increase from 2020, it is still 25 percent lower than 2019.
Net lending to SMEs was €91 million in Q4 2021, reversing some of the decreases from Q2 and Q3 2021. Full year repayments still exceeded new loans by €179 million in 2021. Annual repayments by all SMEs were €4.2 billion in 2021, the lowest annual repayment level since the series began.
Read the full report here.
Standard Life releases results from recent pension survey
Standard Life surveyed 1,150 people across Ireland as part of their “Bringing Retirement Into Focus: 2021” report. Results indicate that men are more prepared than women for retirement, with 43 percent of women indicating that they feel financially unprepared, compared to 31 percent of men.
The report also highlights that 58 percent of millennials (aged 21 to 39) do not own a pension, but over 35 percent of this cohort admit that thinking about pensions makes them anxious.
Over half of adults in Ireland surveyed expect that they will continue to work in some capacity in “retirement”, even if financially comfortable.
Read the report in full here.
Introduction of the Pan-European Personal Pension (PEPP)
This week, a new voluntary retirement savings option for EU citizens, the EU PEPP regime, entered into application. This regime complements existing pension schemes and allows people to pay into the same scheme throughout the EU, intending to address the current challenges involved in transferring pensions across multiple jurisdictions.
The option will be available to anyone wanting to save for retirement, including students, unemployed, employees and self-employed individuals. Costs will be capped at 1 percent of the accumulated capital per year and a switch in providers every five years will be built in at capped costs. The European Insurance and Occupational Pensions Authority will monitor the PEPP market and will be responsible for developing technical standards.
Central Bank warning on investing in crypto assets
The Central Bank released a fresh warning this week on the risks involved with investing in crypto assets. The highly risky and speculative nature of crypto-assets and the risk of misleading advertisements, particularly on social media, are highlighted.
This press release is part of a European-wide campaign by the European Supervisory Authorities stating that crypto-assets may not be suitable for retail customers.
The Central Bank’s cryptocurrency explainer can be found here.
Northern Ireland Labour Market Report and the latest Index of Services published
This week, Northern Ireland Statistics and Research Agency (NISRA) published its most recent Labour Market Report. This report shows an increase of 5.4 percent in the number of payrolled employees in the twelve months to February 2022. February 2022 is the ninth consecutive month where payrolled employees are higher than the numbers seen pre-pandemic.
The claimant count of 39,600 people in February 2022 stood at 4 percent of the workforce, a decrease of 2.3 percent from the previous month’s figures. This is still 30 percent higher than the figures seen pre-pandemic but is a 38 percent improvement from the peak in May 2020.
The Index of Services Bulletin provided positive news, with Northern Ireland’s Service output now at a series high. Q4 2021 Services output is reported to be 3.5 percent above pre-pandemic levels, using Q4 2019 as a comparative. Q4 2021 was the third successive quarter increase following a period of five consecutive quarters of annual decline in the NI index.
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