Cyprus’ banking sector saw a notable increase in liquidity, reaching €28.7 billion in August 2024, as reported by the Central Bank of Cyprus (CBC). This growth was driven by rising deposits and a decrease in loans, reflecting a robust financial position.
According to CBC data, total deposits surged by €288.5 million in August, surpassing the €164.7 million rise observed in July. This brought the total deposit balance to €53.6 billion, with an annual growth rate of 3.8%, up from 2.9% in the previous month.
The increase in deposits was primarily fueled by savings from Cypriot residents, who contributed €194.2 million. Of this amount, households accounted for €34.6 million, while non-financial corporations added €46.8 million. Other domestic sectors, including various financial entities, saw a total rise of €112.8 million.
On the other hand, the total amount of loans decreased by €74.9 million in August, marking a significant decline from the modest €7.2 million drop in July. Compared to August 2023, the annual growth rate for loans fell to 1.7%, down from 2.0% in July, with the total loan balance standing at €24.9 billion.
Loans to residents fell by €72.2 million, including a €25.8 million reduction in household loans and a €53.6 million decrease in loans to non-financial corporations. However, loans to other domestic sectors, which include government and financial entities, saw a slight increase of €7.2 million.
Source: Knews