The difference of loans against deposits in the Cypriot banking system fell to €4.9bn in November and for the very first time to below pre bail-in levels, the Central Bank of Cyprus.
Total deposits increased last month by €358m compared to October to €49bn, the highest since June 2013, the central bank said in a statement on its website on Thursday. Total loans dropped by €29m to €53.9bn.
The increase in deposits was mainly on a €195.1m rise in funds held by mainly domestic non-financial firms while deposits held by financial corporations rose by €148.3m in November compared to the month before to €11.4bn and €6.4bn respectively, the supervisory authority said.
The drop in total loans was mainly on a decrease in household indebtedness by €51m in November to €22.5bn, with mortgages accounting for four fifths of the decrease, the central bank said. This was partly offset by an increase in loans extended to non-financial companies and other financial corporations by €13.5m and €13.3m to €22.6bn and €7.9bn respectively.