This followed the positive results of the stress-test conducted by the European Central Bank, reflecting a broader stabilisation in the banking system.

Based on the results of the ECB announced on October 26, 2014, Cooperative banks remedied any losses from the baseline scenario of the stress-test and showed a surplus of €331 million, which, together with the media campaign, appears to have acted as a catalyst in stabilising the deposit base.

The Cyprus News Agency said 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 mainly dominated last year.

However, despite the significant outflow of deposits last year, cooperative institutions maintain the largest share with 27% of total deposits of the banking system, which on December 31 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 on the recovery and restructuring of non-performing loans and are expected to dynamically grant new loans.

Source: Cyprus Mail