30/10/2009 06:43
The loan and the deposit portfolios of the domestic banks grew slower in September, reflecting the difficulties that their customers face due to the domestic economic recession. According to fresh Central Bank data, the banks lose deposits at the same time that the efforts for the allocation of their new lending products stumble at the hesitation of the businesses and the households to undertake new responsibilities.
The stillness in the banking funds is exceptionally intense in deposits. The annual flow of new deposits in the system fell to 1.8% in September against 3.1% in August and 13.5% in September 2008.
Since early 2009, the deposit portfolios grew by €1.7 billion. If we take into account the state remittances of €2.4 billion and the interests paid in older deposits, it seems that there were outflow of deposits, boosting liquidity pressures.
The businesses and the households seem to proceed with withdrawals for the coverage of the increased liquidity needs at the same time that part of the depositors is seeking better yields than the annual rate of 4-5% offered by the banks and the Coops today.
According to the figures, the Cypriot depositors proceeded with net withdrawals in the past three months unlike the third countries’ citizens, who added millions in the system.
Overall, the deposits in the system in September fell to €57.5 billion, €15 billion of which stem from third countries’ citizens.
Due to the exceptionally low deposit growth, the loan portfolios exceeded the total deposits in the system for the first time.
The deposits of €12 billion that the banks had in September 2007 and of €6 billion last September do no longer exist, since loans reached €57.7 billion in September.
The loan portfolios grew by 11.6% against 14.4% in August. It is worth noting that last year, credit expansion grew by 36.6%.
The Cypriot businesses are very reserved in raising new loans and they stick to the servicing or the refinancing of the existing loans. The business loans in September hardly grew by 7.1% against 37.3% in September 2008.
The offer of new housing products with teaser low-interest rate loans of limited duration kept the growth rate of housing credit to 11%.
Finally, the consumer loans for the same month grew by 10.1%.
The stillness in the banking funds is exceptionally intense in deposits. The annual flow of new deposits in the system fell to 1.8% in September against 3.1% in August and 13.5% in September 2008.
Since early 2009, the deposit portfolios grew by €1.7 billion. If we take into account the state remittances of €2.4 billion and the interests paid in older deposits, it seems that there were outflow of deposits, boosting liquidity pressures.
The businesses and the households seem to proceed with withdrawals for the coverage of the increased liquidity needs at the same time that part of the depositors is seeking better yields than the annual rate of 4-5% offered by the banks and the Coops today.
According to the figures, the Cypriot depositors proceeded with net withdrawals in the past three months unlike the third countries’ citizens, who added millions in the system. Overall, the deposits in the system in September fell to €57.5 billion, €15 billion of which stem from third countries’ citizens.
Due to the exceptionally low deposit growth, the loan portfolios exceeded the total deposits in the system for the first time.
The deposits of €12 billion that the banks had in September 2007 and of €6 billion last September do no longer exist, since loans reached €57.7 billion in September.
The loan portfolios grew by 11.6% against 14.4% in August. It is worth noting that last year, credit expansion grew by 36.6%.
The Cypriot businesses are very reserved in raising new loans and they stick to the servicing or the refinancing of the existing loans. The business loans in September hardly grew by 7.1% against 37.3% in September 2008.
The offer of new housing products with teaser low-interest rate loans of limited duration kept the growth rate of housing credit to 11%.
Finally, the consumer loans for the same month grew by 10.1%.
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