Cyprus’s bank deposits have reached unprecedented levels despite low interest rates and widespread concerns about cost of living pressures, according to data from the Central Bank of Cyprus.
Household deposits reached €28.12 billion at the end of October, surpassing pre-2013 banking crisis levels when deposits stood at €26.39 billion in late 2012. This marks the highest level since the Central Bank began recording data in 2005.
Corporate deposits from domestic residents also peaked at €11.75 billion in October, the highest figure on record since 2005.
Total deposits increased by €377.6 million in October 2024, following a €485.7 million rise in September.
The annual growth rate of total deposits reached 5.4 per cent in October, up from 4.5 per cent in September, bringing the total deposit base to €54.6 billion.
Deposits from Cyprus residents grew by €230.2 million, with household deposits increasing by €64.9 million and non-financial corporations by €115.8 million. Other domestic sectors saw a combined increase of €49.4 million.
The European Commission, in its 17th Post-Programme Surveillance Report released two days ago, noted that Cypriot banks maintain abundant liquidity, with a liquidity coverage ratio of 332 per cent and a net stable funding ratio of 184 per cent as of June 2024.
Both metrics significantly exceed EU averages of 161 per cent and 130 per cent respectively.
Total loans decreased by €213 million in October 2024, contrasting with a €107.3 million increase in September. The annual loan growth rate remained stable at 2.0 per cent, with the total loan book standing at €24.8 billion.
Domestic loans declined by €130.4 million, though household lending increased by €9.4 million. Non-financial corporate loans fell by €132.2 million, while other domestic sectors saw a €7.6 million decrease.
The Commission highlighted that the sector’s loan-to-deposit ratio stands at 45 per cent, less than half the EU average of 95 per cent.
Read more:
