Funds deposited in the Cypriot banking system dropped by €164.9m to €49bn in September as the amount of outstanding loans dropped by €134.6bn to €52.6bn, the lowest in nine years, the Central Bank of Cyprus said.
The amount on deposits fell in September in a month mainly on withdrawals by other financial intermediaries and non-financial corporations worth €192.4m and €39.8m which fell to €6.1bn and €11.3bn respectively, the bank supervisor said in a statement on its website on Thursday. The drop was partly offset by a €45.1m and €21.7m increase in the funds deposited by households and Insurance and pension funds to €28.6bn and €2bn, also respectively.
Other financial intermediaries were also mainly responsible for the overall deleveraging as the loans extended to them fell by €108m in September to €8.7bn, the central bank said. Households repaid €61.9m in loans and insurance and pension funds €0.5m reducing their overall balance to €21.8bn and €13.8m respectively. Banks extended €41m in fresh loans to non-financial corporations which increased the total amount of credit to companies to €21.3bn.