By Stelios Orphanides
Deposits in the Cypriot banking system rose in February by €174.9m in a month to €49.3bn, the highest since August 2013, as the downward trend in loans was halted, the Central Bank of Cyprus said.
The increase in deposits in February was mainly on inflow from non-financial corporations which saw their bank account balance increase by €144.6m in a month to €11.4bn, the central bank said in a statement on its website on Monday. Household deposits rose by €32.5 to €28.6bn and those of insurance companies and pension funds rose by €10.3m to €2bn. Deposits held by other financial corporations and the government fell by €9.9n and €2.2m to €6.4bn and €949.3m respectively.
Deposits held by Cyprus residents rose by €187.9m to €36.6bn last month compared to January while those of other euro area residents and third country residents fell by €1.8m and €11.2m to €3.2bn and €9.5bn, the central bank said.
The total amount of outstanding loans rose last month by €139.2m to €55.2bn in a month mainly on €214.8m in fresh loans extended to other financial corporations which rose to €9.2bn, the central bank said. Loans to non-financial companies and insurance companies and pension funds rose by €2m €0.1m to €22.4bn and €15m. Household lending fell by €72.3m to €22.7bn mainly on a €36m drop in housing loans.
Total credit extended by commercial banks to Cyprus residents rose last month by €210.2m to €45.3bn while the outstanding loans of other euro area residents and third country residents fell by €44.4m and €26.7m to €2.6bn and €7.2bn respectively.