A new increase, the biggest in recent months, show a correlation between deposits in August 2016 and a boost in consumer confidence.

The actions of the banks in terms of deleveraging and clearing their balance sheets at a quick pace has been all the more significant as depositors feel more confident about the economy.

This is evident in the difference between loans and deposits.

Total deposits in August 2016 showed a net increase of €872.7 million compared to the net increase in July at €269 million.

The annual rate of change climbed to 6.4% compared to 5.5% in July, and the rest of the total deposits in August reached €47.9 billion.

Total loans in August 2016 showed a net increase of €476.2 million compared to a net loss of €175.8 million in July 2016.

The rest of the total loans reached €54.5 billion in August 2016.

Deposits are at their highest point since August 2013, while loans are at their lowest point since March 2009.

Source: InCyprus