Increased Profitability for Banks Due to ECB Monetary Policy
September 9, 2024
Banks are benefiting from the ECB's monetary policy and have increased their profitability with little effort. In the first half of 2024, Bank of Cyprus, Hellenic Bank, and Eurobank Cyprus reported total profits of €565 million. The high deposit facility rate set by the ECB provides significant gains for the banks, as their liquidity is deposited with the ECB. Criticism is rising regarding the lending and deposit rates due to the gap between the two.