Cyprus Mail

Bank deposits, loans gap reduced to post-crisis low

The gap between deposits and loans in the Cypriot banking system shrank last month to a mere €3.1bn, the narrowest since January 2013, two months before the bail-in, the central bank said.

Total deposits in the banking system rose last month by €335.1m to €49.5bn while total loans fell by €110m to €52.5bn, the lowest since September 2008, the month in which Lehman Brothers collapsed dragging the world financial sector into chaos, the Central Bank of Cyprus said in a statement on its website.

The increase in deposits in September was mainly on €181m in inflows to accounts held by non-financial corporations and €97.2m to household accounts which saw their balance increase to €11.8bn and €28.8bn respectively, the bank supervisor said. Other financial intermediaries saw their deposits increase by €73.8m to €6.2bn while those held by insurance corporations and pension funds decreased by €33.5m to below €2bn.

The decrease in loans was mainly on deleveraging among households which repaid their loans to banks by €58.6m last month to €21.7bn, the central bank said. Other financial corporations reduced their outstanding loans by €37.8m to €8.7bn while net loan repayments of non-financial corporations was €4.7m reducing their debt to €21.3bn.

Related posts

British couple injured in road accident

Staff Reporter

Woman in north in quarantine pending coronavirus test results

Police search for two suspects for murder of man in Nicosia (Update)

Evie Andreou

Appalling conditions at Athalassa: ‘The situation is desperate’

Gina Agapiou

Pensioner dies in traffic accident

Katy Turner

Cyprus strongly objects to cut in EU funds for migration

George Psyllides