On Thursday 28th June the Central Bank of Cyprus released fresh data on loans and deposits for May.
According to the country's main financial institution, the island nation's banking system recorded a significant increase in new deposits and loans.
Deposits
Total cash in deposit accounts with banks in Cyprus increased by €925.7 million in May 2024, compared with a net increase of €209.1 million in April 2024. The annual growth rate was 2.8 per cent, compared with 1.46 per cent in the previous month. The deposit balance reached €53.3 billion in May 2024.
The Central Bank of Cyprus emphasised that the growth in total deposits was mainly due to a net increase in deposits from households and non-financial corporations of €107.6 million and €315.1 million respectively. Deposits of other domestic sectors increased by €356 million in May.
Loans
Total loans increased by €70.2 million, compared with a net decrease of €278.6 million in April 2024. The annual rate of change in May 2024 was 1.2%. The total stock of loans in May 2024 reached 24.9 billion euro.
It is worth noting that from January 2021 to April 2024, the maximum outflow of funds 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 €59.6 million in May 2024. Loans to households increased by €3.4 million and loans to non-financial corporations by €62.2 million. Loans to the rest of the economy decreased by a total of €6 million.