articles | 26 March 2015

Deposits fall for first time since November 2014

Lending in Cyprus’s banking system fell in February 2015 by €106m compared to the month before and 1.2% compared to a year ago to €64.6bn as deposits fell slightly, the Central Bank of Cyprus said.

The drop in overall outstanding amounts, which continued to rise in November to January, was mainly on a €530 million decrease in outstanding loans extended to other financial institutions in other euro area countries, partly offset by a €374.6 million increase in loans to other financial institutions in third countries, the central bank said in a statement on its website today.

The outstanding amount of loans extended to customers in Cyprus stood at €50.1 billion in February after growing by €12.5 million, the statement said. The rise resulted from increases in lending to Cyprus-based other financial institutions and to the government by €90.6 million and €35.3 million to €5 billion and €899.3 million respectively, which more than offset a €87.8 million decline in lending to households to €21.8 billion. Outstanding loans to non-financial companies and insurance companies and funds fell by €25.1 million and €0.5 million to €22.4 billion and €22 million respectively.

Overall deposits dropped in February to below €46.5 billion, which was €38.3 million less than a month before, the central bank said. Deposits held by Cypriot households and other legal entities fell to €32.2 billion, which was €145.7 million less than in January. Non-financial companies reduced their deposits by €59.3 million to €5.2 billion while insurance companies and pension funds as well as households saw their deposits drop by €29.5 million and €29.2 million to €2.1 billion and €€22.3 billion respectively.

Deposits held by residents of other euro area countries as well as third countries rose by €68.5 billion and €39m to €2.1 billion and €12.1 billion respectively, the central bank said.

Source: Cyprus Mail

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