In July 2026, banks on the island recorded a decline in the total volume of loans, while deposits continued to grow. The increase was particularly noticeable in funds held in the accounts of Cypriot households and companies.
Loans
According to new data from the Central Bank of Cyprus, the total volume of loans issued by Cypriot financial institutions decreased by €68.7 million in July 2026 compared with June. By comparison, the previous month had recorded a net increase of €499.4 million. As a result, the total outstanding amount of loans stood at €28.3 billion at the end of July. The annual growth rate also slowed slightly, to 11.1% from 11.6% in June 2026.
The main reason for the decline was the repayment of around €90 million in loans by residents of EU countries other than Cyprus who belong to the euro area. Loans to Cyprus residents, by contrast, increased slightly by €1.8 million. The most noticeable growth was recorded in the household sector, where lending increased by €65.7 million. At the same time, loans to non-financial corporations decreased by €79.6 million, while lending to the remaining domestic sectors of the economy increased by a combined €15.8 million.
Deposits
Against the backdrop of a shrinking loan portfolio, Cyprus’s banking system continued to increase the volume of deposits. In July, total deposits rose by €562.3 million. This was slightly below the €601.2 million increase recorded in June, but the figure remained high.
The annual growth rate of deposits, by contrast, accelerated from 5.0% in June to 6.2% in July 2026. The total amount held in deposits reached €59.2 billion. The main contribution to the increase came from deposits by Cyprus residents, which rose by €603.2 million.
In July, household deposits in Cyprus increased by €195.7 million, while funds held by non-financial corporations rose by a further €257.1 million. Deposits from the remaining domestic sectors of the economy increased by a combined €150.4 million.
Thus, the July statistics show a noticeable divergence between lending and savings trends: loans declined, while deposits continued to rise. For the banking sector, this means that a significant volume of liquid funds remains available, while for the Cypriot economy it reflects continued interest among households and businesses in keeping money in bank accounts.