CYPRUS: Cypriots prefer to hoard cash in safety deposit boxes

Post-crisis Cypriots still appear to be suspicious of the banking system, as many are choosing to stash their cash, along with other valuables, in safety deposit boxes.

Currently Bank of Cyprus and Hellenic Bank have 17,000 such boxes leased to customers.

It is believed that customers opt for the safety deposit boxes in order to save their cash as they fear another haircut on deposits, similar to the one imposed on deposits of Laiki Bank and Bank of Cyprus customers in 2013.

Overnight people lost savings above a €100,000 as the casino bankers at Laiki went under and Bank of Cyprus had to recapitalize itself. Unsurprisingly, trust issues in the banks remain front and centre to this day.

Money and other valuables, such as gold bars and jewellery are stashed in safety deposit boxes, at a time banks offer low interest rates on savings and charge more for services.