articles | 07 January 2014

Cyprus banks’ private sector deposits rise in November

Consumer and company deposits rose in Cypriot banks in November, the first increase in 17 months on the island where big account holders in the two largest lenders were forced to take a hit as part of an international bailout in 2013.

Private-sector deposits rose by 0.8% to €35.4 billion after a 1.3% fall in October, European Central Bank data showed recently. The deposits are still 30% below their peak of €50.5 billion in May of 2012. Banks on the island were shut for nearly two weeks in March after Cyprus agreed a €10-billion bailout, which forced major depositors to pay part of the cost of the rescue. Capital controls are still in place, with limits on how much people can transfer from their accounts. Cyprus is gradually easing the controls.

The data showed that deposits in other southern European countries mired in the debt crisis remained relatively stable. Private-sector deposits rose by 0.7% in Spain and by 0.5% in Italy and Greece in November. They inched up in Portugal and were down slightly in Ireland and Slovenia. Monthly fluctuations in the figures are common, though sharp consecutive drops in countries with stable banking systems are unusual. The data, which are for all currencies combined, are not seasonally adjusted and differ slightly from national central bank figures. They exclude deposits from central government and banks.

Source: Cyprus Mail

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