The financial system of Cyprus continues to demonstrate resilience and gradual recovery. According to the Central Bank of Cyprus, in February 2026 the island recorded an increase in the volume of new deposits and loans, indicating rising business activity and trust in the banking sector.
Deposits are growing: return of trust in banks
In February, the total volume of deposits in the banking system increased by 202.2 million euros, marking a noticeable reversal after a decline in January. The annual growth rate was 4.7%, slightly below the previous month’s figure but still maintaining positive dynamics. The total volume of deposits reached approximately 57.2 billion euros.
The main contribution to growth came from residents of the country. Households continued to increase their savings, raising their deposits by more than 100 million euros. This may indicate a desire for financial stability among the population amid global uncertainty and high interest rates.
At the same time, the corporate sector showed more restrained dynamics. Deposits of non-financial companies decreased slightly, which may be conntected with the active use of funds for investments or covering current expenses. At the same time, other domestic sectors showed overall growth, offsetting the decline in the business segment.
Lending accelerates: demand for loans increases
Along with the growth in deposits, lending activity is also increasing. In February, the total volume of issued loans rose by 326.2 million euros, significantly exceeding January’s figures. Annual growth reached 12.3%, confirming the acceleration of lending in the economy.
The total loan portfolio in Cyprus reached approximately 27.3 billion euros. The main growth was driven by residents of the country, where the increase amounted to about 110 million euros. Both households and companies continue to actively attract financing, indicating a revival in the real estate market, entrepreneurial activity, and consumer demand.
Economic context: what is behind the numbers
The growth of deposits and loans reflects broader processes in the Cyprus economy. In recent years, the country has demonstrated steady recovery after crisis periods, supported by the development of tourism, inflow of investments, and activity in the real estate sector.
In addition, gradual adaptation to high interest rates and inflationary challenges is shaping a new financial behavior model for both the population and businesses. People continue to save money while not abandoning major purchases and investments, maintaining a balance between savings and spending.
Experts note that further dynamics will depend on external factors, including the policy of the European Central Bank and the global economic situation. If current trends continue, Cyprus’s banking sector may keep strengthening, and lending may remain one of the key drivers of economic growth.
Overall, the latest data show that the island’s financial system remains stable and adaptive. Growth in deposits and active lending form the foundation for further economic development, despite ongoing challenges on the international stage.