This is smallest outflow of deposits since January 2013, reflecting signs of stabilisation in the system, since the March €10 bln bailout which featured a haircut of uninsured deposits to save the island’s ailing banks. On a positive note, domestic residents deposits increased by €374 mln to €32.86 bln. Deposits of residents from other Euro countries declined by €44.1 mln to €2.63 bln, whereas deposits from non-euro area residents declined by €468.4 mln to €11.67 bln. On an annual basis, deposits declined by €22.7 bln including the haircut which amounted to €9.4 bln.

Total loans increased in November by €136.5 bln reaching €63.44 bln from €63.30 bln in October, owing to increases in loans to residents of the rest of euro area member states and residents of non euro area states. Loans to domestic residents declined by €146.8 bln falling to €49.10 in November from €49.26 in October, whereas loans to residents coming from the rest of the Euro area increased by €96 mln and loans to residents of non euro area states accelerated by €187 mln. Loans to businesses increased in November by €391 mln to €29.15 bln from €28.7 in October.

Household deleverage continued for the sixth consecutive month, as loans to households declined by €153.1 mln to €21.64 bln. Consumer loans declined by €42.2 mln, while housing loans by €72.5 mln. On the other hand loans to businesses from the rest of the euro area increased by €44.6 mln while loans to households residents from the rest of the euro area increased to €258.3 mln from €163.8 mln in October. Loans to businesses from non-euro area countries increased in November by €400 mln reaching €4.14 bln from €3.74 bln in October.

Source: Financial Mirror