Bank deposits rise by 12 bln in 12 months

The significant increase in deposits over the last few months has provided the local credit system with a strong injection of liquidity, as household and corporate deposits had reached 168.4 billion euros by the end of the year’s first half against 156.1 billion euros a year earlier.

The rise in deposits, which has been a constant feature over the last few years, along with the reduction of local banks’ dependence on the Eurosystem, is facilitating the lenders’ efforts to finance the economy. Credit is slowly recovering, mainly through the increase in loans issued to corporations and the financing of investment plans.

According to data for the year’s first six months, the liquidity index of banks, which reflects the ratio of loans to deposits, improved to 85 percent at end-June from 87 percent at end-March.

This was helped by the inflow of deposits to a net amount of 3.7 billion euros in the second quarter of the year, and by the reduction of the banks’ loan portfolios by 845 million euros.

The loans of the four systemic banks added up to 183.1 billion euros, and if provisions are deducted the net loan sum shrank to 143.7 billion euros.

Source:ekathimerini.com