Cyprus’ banks kept their lending criteria unchanged in the third quarter of 2025, with both businesses and households facing the same terms and conditions as in the previous quarter, according to the Central Bank of Cyprus’ (CBC) latest Bank Lending Survey (BLS).

According to the survey, loan demand also remained broadly stable, with net demand unchanged across all client categories, businesses, housing borrowers, and consumers.

At the same time, banks expect this steady pattern on the supply side to continue into the fourth quarter. The criteria for granting loans to both businesses and households are anticipated to remain unchanged, for all types of credit.

However, in contrast to supply expectations, banks foresee an increase in net loan demand in the fourth quarter, both from businesses and from households seeking housing, consumer or other credit.

In terms of supply developments, the CBC noted that criteria for business, housing, consumer and other household loans all remained unchanged in the third quarter.

All factors influencing lending standards had a neutral impact during the period under review.

Similarly, the overall terms and conditions for granting new loans or credit lines also remained stable.

For businesses, terms were broadly unchanged. However, the survey recorded a decrease in interest rates for new business loans and in banks’ margins for standard business lending.

This, it said, reflected increased competition between banking institutions and a perceived reduction in risk linked to the general economic outlook.

As for households, both the specific terms of new housing, consumer and other loans, and the factors shaping these terms, also had a neutral impact during the quarter.

On the demand side, net demand for loans was unchanged in all categories in the third quarter.

According to the survey, all underlying factors affecting loan demand had a neutral effect across businesses, housing borrowers and consumers.