Lending criteria for businesses and households in Cyprus remained unchanged during the third quarter of 2024, when compared to the previous quarter, according to the bank lending survey published by the Central Bank of Cyprus (CBC).

The survey data highlights changes in lending criteria and loan demand recorded in Cyprus during the third quarter of 2024 relative to the second quarter.

It also provides insights into expected trends for the fourth quarter of 2024.

The central bank explained that the survey results reflect the perceptions and expectations of the participating banks and do not represent the views or forecasts of the CBC itself.

All factors influencing loan approval criteria across all categories had a neutral impact during the reporting quarter.

Similarly, the overall terms and conditions for granting new loans to businesses and households remained unchanged compared to the previous quarter.

For businesses, this stability persisted despite a recorded decrease in interest rates for new corporate loans, a reduction in banks’ lending margins for standard corporate loans, increased competition from other financial institutions, and a lower perceived risk associated with the general economic outlook.

Household mortgage lending criteria also remained unchanged in the third quarter of 2024 despite a decline in interest rates and bank lending margins for new housing loans.

Similarly, all factors affecting the terms and conditions for granting new consumer and other household loans had a neutral impact during this period.

In terms of loan demand, net demand from businesses remained stable for the second consecutive quarter.

However, net demand for housing loans from households increased for the first time since the first quarter of 2022, driven by improved prospects in the housing market.

Meanwhile, net demand for consumer and other household loans remained unchanged.

Looking ahead to the fourth quarter of 2024, banks expect lending criteria for both businesses and households to remain stable.

At the same time, net demand for business loans and housing loans is anticipated to rise, while net demand for consumer and other household loans is expected to remain steady.