Cyprus Banking Sector Thrives: Surge in Deposits and Shifting Loan Trends Revealed in Central Bank Report

Cyprus experienced a notable upswing in both deposits and loans within its banking sector during November 2023, as revealed by the latest Monetary and Financial Statistics report released by the Central Bank of Cyprus (CBC) in December 2023.

The report highlights a substantial increase in total deposits, with November 2023 witnessing a net rise of €91.7 million. This marks a significant turnaround from the preceding month, October 2023, which saw a net decrease of €61 million. The annual rate of change in total deposits also displayed positive momentum, reaching 0.9%, up from 0.7% in October 2023, resulting in total deposits for November amounting to €51.9 billion.

Breaking down the deposit figures, Cypriot residents contributed to the positive trend with an increase of €40.7 million. Notably, household deposits within this category experienced a decrease of €102.4 million, while deposits from domestic non-financial corporations registered an increase of €66 million. Other domestic sectors collectively contributed to the uptick with a notable increase of €77.1 million in deposits.

In terms of loans, November 2023 saw an overall net increase of €15 million, a noteworthy shift from the net decrease of €212.9 million observed in October 2023. Although the annual rate of change in total loans remained slightly negative at -0.2%, there was an improvement from the -0.3% recorded in October 2023. The remaining total loans for November amounted to €24.7 billion.

Examining loans to Cypriot residents, a decrease of €45.5 million was noted. However, within this category, loans to households saw an increase of €8.2 million, while loans to non-financial corporations witnessed a decrease of €71.1 million. On a positive note, loans to other domestic sectors collectively saw an increase of €17.5 million.

The report from the Central Bank of Cyprus reflects a dynamic month for the country's banking sector, with a surge in deposits and a noteworthy shift in the trajectory of loans. These developments may signal positive economic trends and financial activities within the nation, providing insights into the state of Cyprus' financial landscape as of the close of 2023.

By fLEXI tEAM