Deposits in Cyprus continue to grow, while lending is accelerating. The Central Bank has recently published fresh statistics for August 2026.
Deposits
According to the data, the total volume of deposits in the banking system increased by €171.5 million in August 2026. For comparison, the increase in July amounted to €562.3 million. Despite the slower monthly growth, the annual rate increased:
- annual deposit growth — 6.5% compared with 6.2% in July;
- the total volume of deposits reached €59.3 billion.
The net increase reflects actual deposit transactions and does not include changes related to reclassifications, exchange-rate movements or other adjustments.
Deposits held by Cyprus residents increased by €175.3 million in August. The main contribution came from non-financial corporations, whose deposits rose by €60.2 million. Household deposits moved in the opposite direction, decreasing by €1.9 million. Deposits of other domestic sectors of the economy increased by a combined €117 million.
Thus, the increase in deposits in August was mainly driven by higher balances held by companies and other domestic sectors, while household deposits remained almost unchanged.
Lending
The lending market also showed an improvement. In August, the total volume of loans increased by €114.6 million. In July, by contrast, a net decline of €68.7 million had been recorded. The annual growth rate of lending accelerated to 11.8%, compared with 11.1% a month earlier. The total volume of outstanding loans reached €28.5 billion at the end of August. Loans to Cyprus residents increased by €36.5 million during the month. This included:
- household loans increased by €12.6 million;
- lending to non-financial corporations increased by €32.4 million;
- loans to other domestic sectors decreased by a combined €8.5 million.
For comparison, in July the total volume of loans decreased by €68.7 million, while the annual growth rate stood at 11.1%. The total volume of loans at that time was €28.3 billion.
What the latest Central Bank of Cyprus data shows
The August statistics show both deposit growth and an acceleration in lending. During the month, banks recorded a net increase of €171.5 million in deposits, while loans grew by €114.6 million. At the same time, it is important to distinguish between monthly changes and annual growth rates: although the increase in deposits in August was significantly smaller than in July — €171.5 million compared with €562.3 million — the annual growth rate rose from 6.2% to 6.5%. A similar situation was seen in lending: after declining in July, loans returned to net growth in August, while the annual growth rate accelerated from 11.1% to 11.8%.
As a result, at the end of August 2026, the Cyprus banking system held €59.3 billion in deposits and €28.5 billion in loans, while the strongest increase in lending among residents was recorded for non-financial corporations.