Cyprus banking system liquidity hits €28.7 billion in August
The liquidity in Cyprus’ banking system reached €28.7 billion in August 2024, driven by an increase in deposits and a reduction in total loan balances, according to a report from the Central Bank of Cyprus (CBC).
Total deposits in August recorded a net increase of €288.5 million, excluding changes from reclassifications, exchange rate fluctuations, and other adjustments.
This was a significant rise compared to the net increase of €164.7 million in July 2024.
The annual growth rate of total deposits reached 3.8 per cent in August, up from 2.9 per cent in July 2024.
What is more, the total balance of deposits in August stood at €53.6 billion.
Deposits from Cypriot residents saw a notable increase of €194.2 million. Specifically, household deposits rose by €34.6 million, while non-financial companies’ deposits increased by €46.8 million.
Deposits from other domestic sectors, meanwhile, experienced a total increase of €112.8 million.
On the other hand, total loans saw a net decrease of €74.9 million in August 2024, following a smaller reduction of €7.2 million in July.
The annual growth rate of loans dropped to 1.7 per cent from 2.0 per cent in the previous month. The total loan balance in August stood at €24.9 billion.
Furthermore, loans to Cypriot residents declined by €72.2 million, with household loans decreasing by €25.8 million and loans to non-financial companies falling by €53.6 million.
However, loans to other domestic sectors saw a total increase of €7.2 million.
These other domestic sectors include investment firms, financial intermediaries, insurance companies, pension funds, and the general government.