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 on Monday by the Central Bank of Cyprus.
Total deposits in monetary financial institutions increased by a net pound 343.8 million in May, reversing a net decline of pound 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 pound 58.0 billion at the end of May.
Resident deposits contributed most of the increase, rising by pound 239.0 million during the month. Household deposits grew by pound 171.3 million, while deposits held by non-financial corporations increased by pound 194.0 million. These gains were partly offset by a decline of pound 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 pound 260.3 million in May, compared with a rise of pound 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 pound 28.1 billion.
Loans to Cyprus residents increased by pound 173.7 million. Lending to households rose by pound 52.7 million, while loans to non-financial corporations expanded by pound 63.0 million. Other domestic sectors recorded a combined increase of pound 58.0 million.