13/08/2015 09:52
The Cooperatives proceeded with a further cut in their deposit rates, taking advantage of the liquidity conditions in the market due to the low demand for loans.
An internal circular sent yesterday to the Cooperative credit institutions publicizes the decision to reduce deposit rates by 20 basis points for all categories with effect from August 10, 2015.
The rate given is increased incrementally depending on the length of the deposit and the deposit amount.
For deposits of up to €50 thousand, the interest rate for one month stands at 0.5%, reaching 1.3% for the annual fixed-term deposit. For deposits of over €200 thousand, the maximum rate given is 1.8%.
The secretaries of the Cooperatives have the right to make small variations on the above rates.
Head of Strategy and Communication Department of the Central Cooperative Bank, Yiannos Stavrinides attributes the reduction to the satisfactory liquidity of the Cooperatives and the need for convergence of the Cypriot interest rates with the European ones.
According to latest figures from the European Central Bank, interest rates on new deposits in Cyprus stood in June 2015 at 1.66% from 1.65% in May and 2.56% in June 2014.
Since February 2015, after the intervention of the Central Bank for an interest rate cut, there has been a decrease of 64 percentage points in deposit rates.
Deposits of the Cooperatives in 2014 amounted to €12.4 bn with a total market share of 26.9%.
Total deposits in the banking system amounted to €46.1 bn last year.
The decline in deposit rates is faster than the decrease in lending rates which remain the highest in the eurozone.
Earlier this year, all other banks cut their interest rates as well, though not a significant increase in the demand for loans has been observed at the current stage.
An internal circular sent yesterday to the Cooperative credit institutions publicizes the decision to reduce deposit rates by 20 basis points for all categories with effect from August 10, 2015.
The rate given is increased incrementally depending on the length of the deposit and the deposit amount.
For deposits of up to €50 thousand, the interest rate for one month stands at 0.5%, reaching 1.3% for the annual fixed-term deposit. For deposits of over €200 thousand, the maximum rate given is 1.8%.The secretaries of the Cooperatives have the right to make small variations on the above rates.
Head of Strategy and Communication Department of the Central Cooperative Bank, Yiannos Stavrinides attributes the reduction to the satisfactory liquidity of the Cooperatives and the need for convergence of the Cypriot interest rates with the European ones.
According to latest figures from the European Central Bank, interest rates on new deposits in Cyprus stood in June 2015 at 1.66% from 1.65% in May and 2.56% in June 2014.
Since February 2015, after the intervention of the Central Bank for an interest rate cut, there has been a decrease of 64 percentage points in deposit rates.
Deposits of the Cooperatives in 2014 amounted to €12.4 bn with a total market share of 26.9%.
Total deposits in the banking system amounted to €46.1 bn last year.
The decline in deposit rates is faster than the decrease in lending rates which remain the highest in the eurozone.
Earlier this year, all other banks cut their interest rates as well, though not a significant increase in the demand for loans has been observed at the current stage.
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