After experiencing a notable increase over the past two months, both deposits and loans in the Cypriot banking system witnessed a decline in July 2023.

According to data released this week by the Central Bank of Cyprus (CBC), total deposits in July 2023 experienced a net decrease of €301.1 million, in contrast to a net increase of €399.2 million in June 2023.

The decrease in deposits can primarily be attributed to a net reduction of €227.9 million in domestic resident deposits. Meanwhile, household deposits saw a decline of €74.7 million.

On the contrary, there was an uptick of €184.3 million in deposits held by the General Government, mitigating the overall reduction in deposits.

The annual rate of change reached 2.4 per cent, compared to 2.7 per cent in June 2023. The remaining deposits in July 2023 dwindled to €51.9 billion.

Moreover, total loans in July 2023 experienced a net decrease of €100.3 million, in contrast to a net increase of €123.2 million in June 2023. This shift was primarily due to a decrease in domestic resident loans by €109.9 million. An increase of €9.2 million was noted in loans to residents of other EU member states.

In relation to domestic residents, loans to companies saw a reduction of €127.3 million, while a rise of €16.1 million was recorded in the total loans of households. These figures encompass consumer, housing, and other loans.

Of the loans taken by households, according to CBC data, there was an increase of €15 million in consumer loans and €10.7 million in housing loans, while other household loans saw a decrease of €9.6 million.

The annual rate of change for loans reached a negative 1 per cent, compared to a negative 1.2 per cent in June 2023.

Finally, the remaining total loans in July 2023 reached €25 billion.