Deposits and lending in Cyprus’ banking system gathered pace in May, with both indicators recording significantly stronger growth compared with the previous month, according to data released by the Central Bank of Cyprus.
Total deposits in monetary financial institutions increased by a net €343.8 million in May, reversing a net decline of €123.1 million recorded in April. The annual growth rate of deposits accelerated to 5.1% from 4.5% a month earlier.
The outstanding stock of deposits reached €58.0 billion at the end of May.
Resident deposits contributed most of the increase, rising by €239.0 million during the month. Household deposits grew by €171.3 million, while deposits held by non-financial corporations increased by €194.0 million. These gains were partly offset by a decline of €126.2 million in deposits held by other domestic sectors, including investment funds, insurance companies, pension funds and government entities.
At the same time, lending activity continued to strengthen, reflecting sustained credit demand across the economy.
Total loans recorded a net increase of €260.3 million in May, compared with a rise of €40.5 million in April. Annual loan growth accelerated to 12.6% from 12.0% in the previous month.
The outstanding stock of loans reached €28.1 billion.
Loans to Cyprus residents increased by €173.7 million. Lending to households rose by €52.7 million, while loans to non-financial corporations expanded by €63.0 million. Other domestic sectors recorded a combined increase of €58.0 million.
(Source: CNA)
