In November 2025, Cyprus’s banking sector recorded an increase in both deposits and lending, confirming the resilience of the island’s financial system. According to the latest data, the annual growth rate of total deposits rose to 6.7%, up from 6.3% in October. This indicates continued depositor confidence amid persistently high interest rates and ongoing economic uncertainty in Europe.
In absolute terms, net deposit inflows in November amounted to €331 million. Although lower than the October figure, this still points to continued accumulation of funds. Total deposits in Cyprus’s banking system reached nearly €58 billion, one of the highest levels in recent years, underscoring the sector’s strong liquidity position.
Households Remain the Key Source of Deposits
Residents of Cyprus continue to be the main contributors to deposit growth. Over the month, their bank savings increased by more than €258 million. The largest increase came from households, which boosted deposits by around €176 million, reflecting the population’s desire to maintain a financial buffer amid inflationary pressures and the high cost of borrowing.
Savings of non-financial corporations showed more moderate growth, while other domestic sectors also made a noticeable contribution. This structure points to relative financial resilience among both private individuals and businesses, despite pressure from borrowing costs.
Lending Is Growing, but at a More Moderate Pace
Alongside rising deposits, lending activity also continued to expand, although at a noticeably slower pace in November. Net loan growth amounted to about €72 million, significantly lower than in October. Nevertheless, the annual growth rate of the loan portfolio accelerated to 10.5%, confirming sustained demand for borrowing.
The total volume of loans in Cyprus’s banking system reached nearly €27 billion. The main growth came from household lending, primarily linked to mortgage loans and the restructuring of previously issued credit. At the same time, lending to non-financial companies remained broadly stable, reflecting a more cautious approach by businesses toward new investments.
Economic Background and Outlook for 2026
Experts note that the slowdown in monthly flows is expected in an environment of high interest rates and tight monetary policy in the euro area. At the same time, annual indicators remain positive, suggesting balanced development of the banking sector without signs of overheating.
Against the backdrop of anticipated decisions by the European Central Bank in 2026 and the potential gradual easing of monetary policy, Cyprus’s banking market could receive an additional boost in both lending and deposit attraction. For now, the November data confirm that the system remains resilient and continues to adapt to changing financial conditions, serving as an important pillar of the island’s economy.