Deposits fell 0.8% to €35.1 billion in December from the previous month, and were at the same level as in October, European Central Bank (ECB) data showed recently. The deposits are still 30% below their peak of €50.5 billion in May 2012. Banks in Cyprus were shut for nearly two weeks last March after the government agreed a €10 billion bailout under which major depositors had 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, although Cyprus is gradually easing the restrictions.

The ECB data showed deposits in other southern European countries mired in the debt crisis remained relatively stable. Private-sector deposits rose by just over 1% in Greece and slightly less than that in Portugal. The increase in Spain amounted to 0.1%. In Italy, private-sector deposits declined by 0.9% and by 1.1% in Ireland. 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