According to the latest data from the Central Bank of Cyprus, the total volume of deposits in the country showed a notable increase. In September 2025, net deposits rose by €670.2 million, a significant improvement compared to August’s modest growth of €44.3 million.
The annual rate of change in deposits reached 6.3%, exceeding the August level of 6%. By the end of September, the total volume of deposits in the country’s banking system stood at €57.2 billion — one of the highest figures in recent years.
The largest increase was recorded among Cyprus residents, whose deposits grew by €456.6 million. In particular, non-financial companies’ deposits increased by €397.2 million, reflecting a revival in business activity, while household deposits slightly declined by €32.5 million. Other domestic sectors collectively recorded an increase of €91.9 million.
Experts note that the rise in deposits is driven not only by the economic recovery, but also by strengthened confidence in the banking system. The stability of the financial sector, GDP growth, and the ongoing digitalization of banking services are encouraging more businesses and individuals to keep their funds in local banks.
Lending on the Rise: Economy Gaining Momentum
In addition, the total volume of loans increased in September 2025, indicating growing economic activity. The figures rose by €269 million, whereas August had seen a decrease of €60.8 million.
The annual growth rate of lending reached 7.9%, compared to 7.2% a month earlier. The total volume of loans in the banking system stood at €26.6 billion, reflecting strong demand for both investment and consumer loans.
Loans to Cyprus residents increased by €101.7 million. Within this, household loans rose by €13 million, and loans to non-financial companies grew by €84.1 million, highlighting the expansion of business activity. Other domestic sectors also posted a small increase of €4.6 million.
Bank analysts point out that lending growth is linked to the recovery of the construction sector, the development of small businesses, and support for investment programs. Furthermore, low unemployment and moderate inflation continue to strengthen households’ ability to service their debts, positively impacting the country’s overall financial balance.
A Stable and Balanced Sector
According to the Central Bank’s forecasts, the positive trends in both deposits and lending are expected to continue through the end of 2025. Overall, credit growth is projected to reach around 8%, while deposits are likely to increase by 6–6.5% — an important indicator of Cyprus’s economic stability ahead of 2026.
Combined with rising investment activity and the growing number of foreign companies choosing Cyprus as a financial base, the island continues to strengthen its position as a regional financial hub in the Eastern Mediterranean.