On Monday, September 27, the Central Bank of Cyprus published the latest statistics on deposits and loans of the island's financial institutions for August.
According to the latest data, in the last summer month of 2021, an inflow of deposits was registered in the Cyprus banking system. By the way, this trend has been observed for the sixth month in a row. On the other hand, the number of issued loans, on the contrary, decreased.
The total amount of funds in deposit accounts with banks in Cyprus increased by 495.6 million euros compared to 52.1 million euros in the previous month. The annual rate of change reached 4.5%, up from 4.2% in July 2021. The total amount of funds placed in deposit accounts with Cyprus banks amounted to 50.1 billion euros.
Deposits of islanders increased to 41.1 billion euros from 40.57 billion euros in August, while deposits of euro area residents - to 2.83 billion euros from 2.75 billion euros, deposits of third-country nationals amounted to 6.21 billion euros in August 2021 compared to 6.29 billion euros a month earlier.
In terms of total loans, they recorded a net decrease of € 117.9 million compared to a net increase of € 107.4 million in July 2021. The annual rate of change reached 1.3%, up from 1.5% in July 2021. The total loan balance in August 2021 reached 29.6 billion euros.
Consumer loans to Cypriots increased by 2.1% from 2% in July, loans in the residential sector fell to 5.3% from 5.4%, and in business - to 3.7% from 4%.
As a result of a significant increase in deposits and a reduction in loans, the liquidity of the Cyprus banking system exceeded 20 billion euros, reaching 20.5 billion euros.