After the banks’ constant effort to reheat the money market, credit growth recorded an increase in December 2009, for the first time after 13 months. Deposit growth recorded a slight increase too for the second consecutive month due to the remittances from third countries and the euro area. This marginal improvement, however, is attributable to last year’s low base.
According to latest Central Bank data, the banks’ credit portfolios grew by 9.7% in December, which is higher than 7.2% in November 2009. This is the first increase since November 2008, when the first signs of the crisis appeared. Then, loans had grown by 37.8%.
The business loans, which show the business’ willingness to make investments, remain exceptionally low. The loans to Cypriot businesses grew by 5.1% in December 2009 against 3.9% in November and 33.9% in December 2008.
The housing loans to Cypriot residents continue to grow, since the banks’ campaigns and the recovery of the domestic demand for properties contribute towards this direction. The housing credit grew by 11.5% in December against 10.9% in November. Last December, it was double.
The total loans to banks stood at €57.88 billion in December against €57.45 billion in November and €54.44 billion in December 2008.
Deposits
The annual inflow of new deposits in the system stood at 3.8% in December from 2.9% in November and 6.8% in November 2008.
The slight acceleration coincided with the period that the banks participated ECB’s auction for the absorbance of cheap money. It is estimated that they absorbed around €2.2 billion. At the same time, however, the government proceeded with withdrawal of state deposits from the system, which is estimated at €2.4 billion.
Overall, deposits in the system stood at €58.16 billion in December from €58.31 billion in November.
Of them, €15.9 billion stem from third country residents, €41 billion from Cyprus residents and €1.3 billion from the euro area.
The deposits of the euro area residents increased by €100 million while those of the third countries by €370 million. On the other hand, the deposits of the Cyprus residents fell by €600 million.
According to latest Central Bank data, the banks’ credit portfolios grew by 9.7% in December, which is higher than 7.2% in November 2009. This is the first increase since November 2008, when the first signs of the crisis appeared. Then, loans had grown by 37.8%.
The business loans, which show the business’ willingness to make investments, remain exceptionally low. The loans to Cypriot businesses grew by 5.1% in December 2009 against 3.9% in November and 33.9% in December 2008.
The housing loans to Cypriot residents continue to grow, since the banks’ campaigns and the recovery of the domestic demand for properties contribute towards this direction. The housing credit grew by 11.5% in December against 10.9% in November. Last December, it was double.
The total loans to banks stood at €57.88 billion in December against €57.45 billion in November and €54.44 billion in December 2008.
Deposits
The annual inflow of new deposits in the system stood at 3.8% in December from 2.9% in November and 6.8% in November 2008.
The slight acceleration coincided with the period that the banks participated ECB’s auction for the absorbance of cheap money. It is estimated that they absorbed around €2.2 billion. At the same time, however, the government proceeded with withdrawal of state deposits from the system, which is estimated at €2.4 billion.
Overall, deposits in the system stood at €58.16 billion in December from €58.31 billion in November.
Of them, €15.9 billion stem from third country residents, €41 billion from Cyprus residents and €1.3 billion from the euro area.
The deposits of the euro area residents increased by €100 million while those of the third countries by €370 million. On the other hand, the deposits of the Cyprus residents fell by €600 million.
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