On Thursday 25th July the Central Bank of Cyprus released fresh data on loans and deposits for June.
According to the country's main financial institution, the island nation's banking system recorded a significant increase in new loans and a decrease in deposits.
Deposits
Total cash in deposit accounts with banks in Cyprus fell by €44.1m in June 2024, compared with a net increase of €925.7m in May 2024. The annual growth rate was 2 %, compared with 2.8 % in the previous month. The stock of deposits reached €53.4 billion in June 2024.
Looking at the details, deposits of Cypriot residents increased by €86.2 million. In particular, deposits of households and non-financial corporations increased by €40 million and €259.8 million respectively. Deposits of the other resident sectors registered an overall decrease of €213.6 million.
Loans
Total loans increased by 234.6 million euro, compared with a net increase of 70.2 million euro in May 2024. The annual rate of change of total loans reached 1.6 per cent, compared with 1.2 per cent in May 2024. The total stock of loans reached 25.1 billion euro in June 2024.
It is worth noting that from January 2021 to April 2024, the maximum outflow from Cypriot banks occurred in March 2022 (€1.071 bn), while the highest inflow occurred in December 2022 (+€586.3 mn).
Loans to Cypriot residents increase by €176.9 million in June 2024. Loans to households increased by €83.3 million and loans to non-financial corporations by €115 million. Loans to the rest of the economy recorded an overall decrease of 21.4 million euro.