By the end of 2025, Cypriot banks demonstrated a noticeable revival. According to data from the Central Bank of Cyprus published in January 2026, annual deposit growth in December reached 6.5%, while the volume of issued loans increased by 10.7%. These figures indicate that individuals and companies have begun using banking services more actively and generally have greater trust in the country’s financial system.
Deposits are growing faster than in the previous month
In December 2025, the total volume of deposits increased by 877.1 million euros. For comparison, in November the increase was significantly smaller, amounting to 330.8 million euros. The Central Bank explains that December figures are partly due to seasonal factors, as cash flows traditionally rise at the end of the year.
The annual growth rate of deposits slightly decreased compared to November, from 6.7% to 6.5%; however, the total volume of funds in accounts reached 58.7 billion euros. This is a high indicator that reflects the stability of the banking sector and the population’s willingness to keep money in banks.
Residents of Cyprus made the main contribution
The largest growth came from deposits of Cyprus residents, which increased by 948.3 million euros. A significant part of this amount was provided by households, which placed an additional 622.3 million euros in banks. Companies in the non-financial sector also increased their deposits by 51.2 million euros. Other domestic sectors of the economy collectively added another 274.8 million euros.
Lending is gaining momentum
At the same time as deposit growth, banks were more actively issuing loans. In December 2025, the net increase in loans amounted to 587.2 million euros, whereas in November it was only 71.5 million euros. Annual lending growth accelerated from 10.5% to 10.7%, and the total volume of loans at the end of the year reached 27.1 billion euros. This dynamic suggests that the economy is gradually reviving and demand for borrowed funds is increasing.
Who borrowed the most
Loans to Cyprus residents increased by 250.5 million euros. Of this amount, 150.1 million euros went to non-financial companies, which are investing and expanding their businesses more actively. Households increased their loan volumes by 113 million euros, which may be related to mortgages and consumer loans. At the same time, loans to other domestic sectors decreased by 12.6 million euros, indicating a more cautious approach by certain market participants.
What this means for the economy
Deposit growth provides banks with more resources, while increased lending supports business and consumption. Taken together, these processes create a more stable financial environment. Against the backdrop of economic stabilization and more predictable monetary policy in the eurozone, Cyprus’s banking sector ended 2025 in good condition and with positive prospects for 2026.