Cyprus banking system sees significant increase in deposits

Deposits in the Cypriot banking system experienced a notable surge in June, reaching a total of €52.3 billion, with liquidity, meaning the difference between deposits and loans, in the system amounting to €27.2 billion.

This marked the second consecutive month of net increase in deposits, with loans also witnessing a net rise, reaching a balance of €25.1 billion in June.

According to data released this week by the Central Bank of Cyprus for June 2023, total deposits recorded a net increase of €399.2 million, excluding changes resulting from reclassifications, foreign exchange, and other adjustments. This is compared to a net increase of €164.8 million in May 2023.

On an annual basis, the rate of change in deposits reached 2.7 per cent in June, compared to 2.6 per cent in the previous month.

The total balance of deposits in June 2023 amounted to €52.3 billion.

Among the positive contributors to the increase in deposits in June were other financial intermediaries with a net change of €241.8 million, non-financial corporations with a net change of €156.9 million, and households with a net change of €23.9 million.

Conversely, insurance companies experienced a decrease of €42.1 million in deposits.

In terms of loans, the data from the Central Bank of Cyprus shows that total loans in June 2023 recorded a net increase of €123.2 million, compared to a net increase of €90.6 million in May 2023. Unlike deposits, the annual rate of change in loans reached -1.2 per cent in June, compared to -1.3 per cent in May 2023.

What is more, the total balance of loans in June 2023 amounted to €25.1 billion.

Among the main contributors to the net change in loans in June were non-financial corporations with a net increase of €78.4 million and households with a net increase of €42.8 million, out of which €29.4 million pertained to housing loans.