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The amount of liquidity in Cyprus's banking system rose to €28.7 billion in August 2024, according to the Central Bank of Cyprus (CBC). This increase was fueled by a growth in deposits alongside a decline in loans.
Data released by the CBC shows that total deposits grew by €288.5 million in August, up from a €164.7 million increase in July. This brought the total amount of deposits to €53.6 billion, marking an annual growth rate of 3.8%, compared to 2.9% in July.
The rise in deposits was largely driven by increased savings among Cypriot residents, which rose by €194.2 million. Households contributed €34.6 million to this increase, while non-financial corporations added €46.8 million. Other domestic sectors saw a total increase of €112.8 million.
In contrast, the total amount of loans in August fell by €74.9 million, a significant drop from the €7.2 million decrease seen in July. Compared to the same month last year, the annual growth rate for loans was 1.7%, down from 2.0% in July. The total amount of loans reached €24.9 billion.
Loans to residents decreased by €72.2 million, with household loans dropping by €25.8 million and loans to non-financial corporations falling by €53.6 million. However, loans to other domestic sectors saw a slight increase of €7.2 million, which includes various financial entities and government sectors.
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