The Central Bank of Cyprus has released data on loans and deposits issued in October 2025.
Loan Growth: Households More Active, Businesses More Cautious
According to the report of the island’s main financial authority, the total volume of new loans in Cyprus increased by €336.6 million — significantly higher than the September rise of €269 million. The annual growth rate of the loan portfolio reached 10.2%, compared with 7.9% a month earlier. By the end of the month, the total volume of loans amounted to €26.8 billion.
Households became more active in borrowing: loans to individuals grew by €61.1 million, indicating sustained demand for housing and consumer credit. Meanwhile, loans to non-financial corporations fell by €34.5 million — possibly due to business caution amid economic uncertainty. Other domestic sectors added €3.8 million to their liabilities.
Deposits Continue to Rise: Strengthening Trust in the Banking System
Bank deposits in Cyprus also continue to grow. In October, the total amount of deposits increased by €412.3 million, slightly below September’s rise of €670.2 million. The annual growth rate of deposits remains stable at 6.3%, and the total deposit portfolio has reached €57.6 billion.
Deposits from Cyprus residents grew by €421.2 million. Of this amount, household deposits accounted for €158.7 million, deposits from non-financial companies for €206.9 million, and other domestic sectors for €55.7 million. These figures reflect rising confidence among the population and businesses in the banking system, as well as an increased tendency toward saving.
What This Means for the Island’s Economy
These results are a positive sign for Cyprus’ economy. The rise in household lending points to increased demand for housing and consumer goods, supporting the construction sector and the domestic market. The growth in deposits indicates that people feel financially secure and prefer to keep their funds in banks.
However, the decline in business lending may signal corporate caution, which should be taken into account when assessing investment activity. Companies may be waiting for greater stability before increasing their debt levels. Overall, the trend shows strengthening liquidity in the banking system and increased consumer readiness to spend, which could support economic growth and accelerate post-crisis recovery.