Cyprus' leading on-line resource for home buyers & real estate investors -

28th March 2024
Cyprus Property News logo
HomeNewsCyprus banks under stronger liquidity pressures

Cyprus banks under stronger liquidity pressures

THE liquidity pressures that the banks in Cyprus face have become stronger and stronger lately; according to latest Central Bank data, they continue to lose deposits and increase their loan portfolios. In December, the banks granted loans of 549 million euro, a quite small amount compared to other months but they lost deposits of 683 million euro.

According to the Central Bank of Cyprus, the total deposits in the system fell from €56.7 billion in November to €56 billion in December 2008. On the other hand and despite the cautiousness in the allocation of new loans, the lending balances reached €54.7 billion at the end of the year against €54.2 billion in November 2008.

The loans granted by the banks were frantic in 2008. On an annual basis, loan growth reached 33%, while deposits grew by 7%. In the last year, banks increased their lending portfolios by €13.7 billion, while their deposits grew by €3.5 million. This means that they lent €4 for every €1 they received in deposits.

The Q4 data are exceptionally interesting since they concern the critical period after the last phase of the financial crisis. The banks allocated loans of €2.8 billion and lost deposits of €0.5 billion. The deposits have been lost due to the outflow of accounts of both Cypriots and non-Cypriots including the Russians.

In early 2008, the banks had €10.1 billion more deposits than loans. Today, the depository “surplus” fell to €1.3 billion. It is worth noting that a significant part of deposits must be maintained for precautionary purposes.

© 1999 – 2009 Stockwatch Ltd.

RELATED ARTICLES

Top Stories

Sign up to receive our free newsletter

We handle your data responsibly, find more about our privacy policy

Cyprus property transfer fees

Elsewhere in Cyprus Property News

EUR - Euro Member Countries
GBP
1.1684
RUB
0.0101
CNY
0.1285
CHF
1.0436

Property capital gains tax (CGT) calculator