Households have begun saving up once more after the financial crisis experienced in the previous years.
Data publicised by the Central Bank of Cyprus shows that deposits in 2016 began to increase, in spite of the fact that the interest rates offered by banks are the among the lowest ever.
By the end of 2016, the savings from household deposits was €28.57 billion compared to €27.74 billion, registering an increase of €830 million(2.9%) in one year, and €1.39 billion compared to 2014.
Household deposits were at their highest level in 2012 and reached €35.73 billion, compared to €34.98 billion in 2011 and €32.94 billion in 2010.
However, business deposits have registered an even more significant increase. The savings from business deposits by the end of 2016 were €11.24 billion, up from €10.11 billion in 2015, an increase of €1.13 billion in one year (up 10.1%).
As expected, today’s volume of business deposits bears no comparison to that before the financial crisis. In 2012 the deposits from the business world were estimated at €22.11 billion, while in 2011 it was at €23.36 billion, double today’s value.
From 2013 onwards the effects of the financial crisis on the banking system and the business world become evident, with part of the deposits being subjected to a haircut, and part of them being used for additional liquidity and investments.
The deposits maintained by insurance businesses and pension funds remained at similar levels in 2016 and 2015, at €1.94 billion and €1.96 billion respectively.
Similar to the previous cases, 2012 was a good time for insurance businesses, with their deposits reaching €4.41 billion.
Meanwhile, deposits from third countries in 2016 were valued at €9.22 billion, in 2013 at €11.76 billion, and in 2012 €21.51 billion.