Surge in Cyprus Banking Sector: Loans and Deposits on the Rise
The financial landscape in Cyprus is witnessing a significant uptick, as reported by the Central Bank of Cyprus (CBC). In a recent update, the CBC has highlighted a notable increase in both loans and deposits within the island’s banking system as of March 2024. This positive trend indicates a robust economic momentum, with liquidity levels soaring beyond €27 billion.
March saw a substantial net increase in total deposits, amounting to €252.1 million, which is a considerable jump from the €63.2 million recorded in February 2024. This growth is not just a month-on-month improvement but also reflects a year-on-year expansion, with the growth rate of total deposits climbing to 0.6 per cent from February’s 0.3 per cent.
When it comes to deposit rates Cyprus residents are particularly active, contributing an increase of €318.5 million in deposits. This includes a rise in household deposits by €70.3 million and a significant €158.8 million boost from non-financial corporations. Other domestic sectors, encompassing a diverse range of financial institutions and entities, have also shown positive deposit activity, with an increase totaling €89.3 million.
The balance of total deposits stood impressively at €52.2 billion in March, reflecting the confidence in Cyprus’s banking sector. For those seeking the best deposit rates in Cyprus, this news could signal a conducive environment for savers and investors alike.
On the lending front, total loans have also experienced a net increase of €133.1 million, albeit a slight deceleration from February’s €348.9 million. Nevertheless, the year-on-year growth rate for loans has edged up to 1.8 per cent from 1.5 per cent in the preceding month.
The balance of total loans reached €25.1 billion in March, with loans to Cypriot residents increasing by €134 million. While household loans saw a marginal decrease, non-financial corporations took the lead with an increase of €138.1 million in borrowing.
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