The Central Bank of Cyprus has published its statistics on deposits and loans for August 2025 as part of its monthly Monetary and Financial Statistics report. The figures reveal an interesting trend that reflects both the resilience of the banking sector and the caution of borrowers.
Deposits Continue to Grow
In August, total deposits in Cypriot banks increased by €44.3 million, contrasting with July’s decline of €154.5 million. The annual growth rate of deposits stood at 6%, slightly lower than the 6.5% recorded the previous month. The total volume of deposits reached €56.5 billion.
A particularly notable increase came from resident deposits: in August alone, they rose by €133.6 million. Household deposits grew by €46.5 million, while the deposit accounts of non-financial corporations expanded by €152.7 million. At the same time, other sectors of the economy—including investment funds, insurance companies, and pension schemes—saw their deposits fall by €65.7 million.
Loans Decline
In contrast to the growth in deposits, loans followed the opposite trajectory. In August, net lending decreased by €60.8 million, whereas July had recorded an increase of €74.9 million. The annual growth rate of the loan portfolio remained stable at 7.2%. The total debt of borrowers stood at €26.4 billion.
Households reduced their outstanding loans by €15.5 million, while non-financial enterprises cut theirs by €48.6 million. Other sectors lowered their borrowing obligations by a further €5.8 million.
What’s Behind the Numbers
The current situation reflects the cautious approach of borrowers, who are reducing their debt burden while simultaneously increasing their savings. This trend can largely be attributed to global economic uncertainty, changing interest rates, and the banks’ conservative lending policies. While the slowdown in lending activity may signal weaker business momentum, the rise in deposits highlights a strong level of confidence in Cyprus’s banking system.
Outlook and Economic Impact
According to experts, the deposit base is expected to continue expanding in the coming months, driven by the corporate sector and the seasonal inflow of tourism, which traditionally boosts bank liquidity. As for lending, a revival may occur towards the end of 2025 if the European Central Bank eases its monetary policy.
For private investors and households, this means banks are likely to offer more attractive deposit terms, while remaining selective in granting loans.