InsiderBusinessLarge outflow of deposits in June

Large outflow of deposits in June

The uncertainty over the Cyprus Co-op Bank in June as the House mulled guarantees that was part of its deal with Hellenic took its toll on deposits, with Central Bank figures showing overall deposits in the Cypriot banking system down by €745.2 m at the end of June to €50.9b. compared to the previous month.
The money is believed to have the left the co-op but was not deposited in other banks. Figures show a significant drop in deposits nearly every month since the start of the year linked to overall uncertainty over the co-op.

In January, deposits fell by €553.3m, in February by €29.3m and in March €642.9m. In April the government deposited   €2.38b and in May there was an increase of  €201.2m.

Figures show deposits from households down by €27 m at the end of June, from companies €135.2 m and from insurance companies and pension funds €58.5m. The biggest outflow was from intermediary financial organisations at €540.7 m.

By nationality, deposits from third country nationals have registered a drop every month except February, totalling €819 m from the start of the year. At the end of June, third country nationals’ deposits were down €314 m. Locals’ deposits fell €401.2 m in June.

In contrast to deposits, loans in June rose by €305.2m compared to a €67m drop in May.  Overall, outstanding loans by the end of June were down by €2.1 b and stood at €46.7 b because of foreign currency and other fluctuations. .

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