Allied Irish funding deteriorates

Allied Irish continues to be affected by the problems plaguing Ireland's economy and banking sector, it said in an update today.The bank's funding position has deteriorated as a result of increasingly challenging market conditions in recent months. Debt securities and customer accounts have reduced, though this has been offset by an increase in secured deposits by banks, particularly monetary authorities.Irish banks have become increasingly dependent on the European Central Bank for loans, to make up for the decline in deposits amid worries over the banks' ability to remain afloat.