Deposits in Cypriot banks rose sharply in September, while lending also strengthened, reflecting resilient liquidity and stable credit demand, according to the Central Bank of Cyprus (CBC). 

In its Monetary and Financial Statistics, October 2025, the CBC said total deposits increased by €670.2 million, compared with a modest rise of €44.3 million in August.  

The annual rate of change reached 6.3 per cent, up from 6 per cent a month earlier, bringing the total balance of deposits to €57.2 billion. 

The CBC clarified that the terms ‘net increase’ and ‘net decrease’ refer to transactions only, excluding any effects from reclassifications, exchange rates or other adjustments.

Deposits held by Cypriot residents grew by €456.6m, driven primarily by a €397.2m rise in deposits of non-financial corporations.  

By contrast, household deposits fell by €32.5m, while the remaining domestic sectors, which include investment funds, insurers, pension funds and the general government, saw a combined increase of €91.9m. 

At the same time, total loans expanded by €269m, reversing the €60.8m net decrease recorded in August. The annual growth rate of total loans climbed to 7.9 per cent, from 7.2 per cent previously, with the loan balance reaching €26.6bn. 

According to the CBC’s detailed figures, corporate deposits grew across most categories, while credit to households for housing and consumption remained broadly steady.  

Average rates on new housing loans hovered around 5.9 per cent, closely aligned with the euro-area average, while new corporate loans were priced near 5.2 per cent. 

Non-performing loans (NPLs) in the banking sector stood at 6.2 per cent at end-February 2025, slightly lower than 6.3 per cent a month earlier, emphasising a gradual improvement in asset quality, according to a separate CBC release.