Increase in Co-op deposits signal positive outlook for Cyprus in 2015?

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Cooperative credit institutions in Cyprus experienced an influx of deposits totalling €260 million and an increase of their deposit figure in November and December last year. This followed shortly after the positive results of the stress-test conducted by the European Central Bank, which showed a stabilisation in the banking system.
Cooperative credit institutions in Cyprus experienced an influx of deposits totalling €260 million and an increase of their deposit figure in November and December last year. This followed shortly after the positive results of the stress-test conducted by the European Central Bank, which showed a stabilisation in the banking system.

Based on the results which were announced by the ECB on October 26th 2014, Cooperative banks relieved any losses from the stress-tests, and showed a surplus of €331 million, which together with the media campaign, appears to have significantly improved the deposit base.

The Cyprus News Agency (CAN) stated that deposits rose to €260 million in the last two months of 2014 (€70 million in November and €190 million in December), reversing the negative climate that was prominent during the majority of last year.

However, despite significant outflow of deposits last year, cooperative institutions maintain the largest share of the market with 27% of total deposits of the banking system, which on the last day of 2014 amounted to €46 billion.

The proportion of total deposits of permanent residents at Cooperative institutions amounts to 41%. Sources told CNA that after the stabilisation of deposits, Cooperative institutions were focusing their efforts now on the recovery and restructuring of non-performing loans and are expected to start offering new loans, moving the Cyprus economy in the right direction for 2015.