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Cyprus’ banks have second lowest deposit rates in EU

Cypriot banks rank second to last in the EU in terms of the interest they pay on total household deposits, according to data released by the European Banking Authority (EBA) as part of its annual risk assessment of the European banking system.

On the other end of the spectrum, the island’s banks rank second among European banks in terms of return on equity.

The EBA data show that Cypriot banks paid an interest rate on household deposits of just 0.0417% in 2023 (down from 0.0158% in 2022), ranking second to last after Bulgaria with an interest rate of just 0.0018%.

Liechtenstein banks placed first with a deposit rate of 2%, followed by the banks in Iceland with 1.7%, Poland and Norway with 1%, Romania with 0.9%, Hungary with 0.8% and France, Luxembourg and the Czech Republic with 0.7%.

As for return on equity, Cypriot banks are in second place among their European peers in 2023, with a rate of 26.3%, compared to 6.9% in 2022.

Hungary's banks are in first place with a return on equity of 28.7%, compared to 5.1% in 2022, while Latvia's banks are in third place with 25.8%, followed by banks in Lithuania with 25.3% and Romania with 23.3%.

(Read the full report here)

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