Deposits held by households and businesses in Greek banks rose by €340 million in May, bringing the total balance to €155 billion, following an increase of €869 million in the previous month, according to data released by the Bank of Greece on Monday.
The annual growth rate of deposits remained unchanged at 4.1%. Business deposits increased by €4.9 billion in May, compared with a decline of €935 million in April, while the annual growth rate accelerated to 18.7% from 10.8% the previous month. Deposits held by nonfinancial corporations rose by €4.58 billion, reversing a decline of €1.07 billion in April. Deposits of insurance companies and other financial institutions increased by €390 million, compared with a rise of €139 million in the previous month.
Overall, private-sector deposits increased by €5.3 billion in May, compared with a decline of €66 million in April. The annual growth rate accelerated to 7.8% from 5.8% a month earlier. Deposits held by the general government fell by €249 million in May, following an increase of €32 million in April. The annual growth rate slowed to 14.6% from 22.5% in the previous month.
On the lending side, the monthly net flow of bank financing to businesses turned positive at €1.28 billion in May, compared with a negative net flow of €1.15 billion in April. The annual growth rate of corporate lending rose to 9.8% from 8.8% in the previous month, reflecting continued momentum in business credit expansion.
