By Stelios Orphanides
Total deposits in the Cypriot banking system rose last month by €168.8m to €49.1bn as total loans dropped by €193.6bn to €54.1bn compared with April, the Central Bank of Cyprus said.
Compared with May 2016, total deposits rose 5.9 per cent against a 1.6 per cent drop in overall credit, the central bank said in a statement on its website on Wednesday. The difference of overall deposits against loans narrowed to €5bn, the lowest since the 2013 banking crisis.
The increase in deposits last month was mainly on a €229.4m monthly increase in the balance of accounts held by non-financial corporations, to €11.3bn in a month, accompanied by a €64.7m increase in household deposits to €28.6bn, the central bank said. This more than offset a €133.6m decline in the accounts held by other financial intermediaries to €6.2bn and a 12.8m reduction in the balance of accounts held by insurance and pension funds to under €2bn.
The deleveraging occurred with loan repayments in all categories led by households, which reduced their liabilities to banks by €86.7m in May to €22.4bn compared with April, followed by other financial intermediaries with a €68.7m drop to €8.8bn and non-financial corporations with a €37.7m reduction to €22bn, the central bank said.