Quarterly data from the Central Bank of Cyprus (CBC) on household assets and liabilities have shown a shift in financial asset distribution.

This trend may have been influenced by the low deposit interest rates offered by banks in recent years.

As of September 2024, household and non-profit institution deposits and cash holdings reached €32.7 billion, reflecting a 2.5 per cent increase from September 2021.

Meanwhile, investments in debt securities rose to €2.1 billion from €1.1 billion in the same period, marking a 90 per cent surge.

Additionally, investments in shares grew from €9.4 billion to €10.3 billion, while assets in other financial instruments increased from €11.6 billion to €14.5 billion.

Out of the overall 10.1 per cent rise in household assets, a significant portion came from increased investments in debt securities, shares, and other financial instruments.

What is more, the report showed that deposits made up 59 per cent of total household assets in September 2021.

Three years later, this share had dropped to 54.8 per cent, highlighting a reduced reliance on deposit-based products.

At the same time, there is a noticeable shift towards alternative investment products, ranging from low-risk government bonds to higher-risk shares.