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Liquidity in the Cyprus banking system rises to almost €29 billion in August

by THEFUTURE.TEAM

September 29, 2024

Liquidity in the Cyprus banking system (the difference between deposits and loans) rose to €28.7 billion in August 2024, driven by the rise in deposits in combination with the reduction in the outstanding balance of loans in the system, data released by the Central Bank of Cyprus (CBC) show.

According to the CBC, total deposits in August 2024 recorded a net increase (excluding the changes resulting from reclassifications, exchange rate and other adjustments) of €288.5 million, compared with a net increase of €164.7 million the month before.

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The annual growth rate of total deposits rose to 3.8%, compared with 2.9% in July 2024. The outstanding amount of total deposits reached €53.6 billion in August 2024, the CBC added.

The rise in deposits was driven by the increase in savings by Cyprus residents, which amounted to €194.2 million. Deposits of households and non-financial corporations increased by €34.6 million and €46.8 million respectively, whereas deposits of the remaining domestic sectors exhibited a total increase οf €112.8 million.

Loans down by €75 million

Total loans in August 2024 recorded a net decrease of €74.9 million, compared with a net decrease of €7.2 million in July 2024.

The annual growth rate (compared with August 2023) stood at 1.7%, compared with 2.0% in July 2024. The outstanding amount of total loans reached €24.9 billion in August 2024.

Loans to Cyprus residents exhibited a decrease of €72.2 million.

Loans to households and non-financial corporations decreased by €25.8 million and €53.6 million respectively. Loans to the remaining domestic sectors exhibited a total increase of €7.2 million, the CBC said.

The remaining domestic sectors include investment funds, other financial intermediaries, financial auxiliaries, captive financial institutions and money lenders, insurance corporations and pension funds and general government.

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Inflationary Pressures On Agricultural And Processed Goods

Data from the national statistics office show rising prices across agricultural products and related goods. Cost increases are extending beyond raw inputs to livestock and processed food items. Additional pressures may emerge from earlier disruptions, including the dengue fever outbreak in Cyprus. These factors are expected to affect pricing gradually.

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Outlook

Energy costs and supply conditions will continue to influence pricing across sectors. Future developments will depend on energy market stability and broader economic trends. Changes in input costs and demand levels will determine the extent of price adjustments in the coming months.