Cypriot deposits remain low despite small rises

07:52 - 08 January 2024

Economy Reporter

The Cypriot banks provided the lowest interest on corporate deposits and the third lowest rates on deposits by households in the Euro area in November 2023 despite marginal monthly increases.

According to data published by the CBC, the interest for deposits by households with agreed maturity up to one year rose to 2.01% in November from 1.58% in the previous month. ECB data showed that the interest rate provided by the Cyprus banking system for household deposits was the third lowest in the Euro area (following Greece and Slovenia) whereas the euro area average rate stood at 3.43%.

Interest rates for corporate deposits in November also rose by three basis points, reaching 2.29% compared with 2.26% in the previous month. However, according to ECB data, they were at the bottom of the Euro area banks with the Eurozone average amounting to 3.70%.

According to the CBC, the interest rate on consumer credit decreased marginally to 6.26%, compared with 6.27% in the previous month.

Interest rates on mortgages in November rose by 13 basis points to 5.04% from 4.91% in October.

According to the CBC, the interest rate on loans to non-financial corporations for amounts up to €1 million increased to 6.00%, from 5.77% in the previous month, whereas, interest rates on loans to non-financial corporations over €1 million registered significant decline of 67 basis points, dropping to 5.59%, compared with 6.26% in the previous month.

(Source: CNA)

Cypriot deposits remain low despite small rises

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