Deposits fall in February as banks extend fresh credit

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By Stelios Orphanides

Bank deposits fell by €29.2m to €48.7bn in February in a month while lenders extended €41.2m in fresh lending increasing the total to €51.1bn, the Central Bank of Cyprus said.

Total deposits rose 1.2 per cent in February compared to the respective month of 2017, the bank supervisor said in a statement on its website. Total lending fell an annual 1.7 per cent.

Compared to January, he reduction in deposits last month was mainly on a €101.5m in outflows from accounts held by the general government at private banks reducing their overall balance to €930.3m, the central bank said. Deposits held by households, non-financial corporations and insurance firms and pension funds fell €19.4m to €28.7bn, €15.7m to €11.1bn and €27bn to €1.9bn respectively. The drop was partly offset by a €134.5m increase in deposits held by other financial intermediaries to €6bn.

The increase in lending in February, which occurred for a fourth consecutive month and for the first time since 2012, was mainly on €52.2m in fresh loans extended to other financial intermediaries increasing their total lending to €8.1bn. Loans to non-financial firms rose by €49.9m to €20.8bn. Households reduced their indebtedness by €53.9m to €21.5bn while the general government repaid €7.1m in loans reducing their balance to €752.9m.

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About Author

Stelios Orphanides is a journalist at CyprusBusinessMail.com. To contact Stelios Orphanides: [email protected]