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Cyprus Banks Maintain Steady Lending Criteria Amid Stable Demand

by THEFUTURE.TEAM

November 28, 2025

Cyprus banks have upheld their lending standards in the third quarter of 2025, with unchanged terms for both businesses and households, according to the latest Bank Lending Survey (BLS) conducted by the Central Bank of Cyprus. This consistent approach reflects a broader stability in the financial sector amid an evolving economic landscape.

Steady Loan Supply and Stable Terms

The survey highlights a steadfast adherence to established lending criteria across all client categories. Whether for business ventures or household financing, the criteria for granting loans remain consistent with previous quarters. This stability extends to specific terms for new business loans, where a slight decline in interest rates and banking margins can be observed. These adjustments, attributed to heightened competition and a more favorable economic risk profile, underscore the evolving market dynamics.

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Anticipated Uptick in Loan Demand

Despite the stable supply side, banks anticipate a rise in net loan demand in the upcoming fourth quarter. Both businesses and households are expected to seek additional credit for various purposes, including housing, consumer needs, and other credit facilities. This forecast suggests that while the lending criteria remain unchanged, consumer confidence and economic activity might drive higher demand for credit.

Neutral Impact Across Lending Categories

The overall analysis from the CBC confirms that all underlying factors influencing lending standards – for business, housing, consumer, and other loans – have had a neutral impact over the period reviewed. This balanced stance in both loan supply and demand points toward a sustained continuity in the banking sector’s approach to credit risk and market competition.

As Cyprus navigates through a complex economic environment, these measured adjustments and stable lending practices provide a resilient foundation for future growth and investment.

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Nearly 80% Of Cyprus’ Foreign Investment Came From Outside EU In 2025

by THEFUTURE.TEAM

November 11, 2026

Cyprus had the highest share of foreign direct investment (FDI) originating outside the European Union among 14 EU member states reporting data for 2025. According to Eurostat, non-EU economies accounted for 79.4% of the island’s inward FDI, highlighting its distinct position among the reporting countries.

The figures contrast with most other EU economies, where investment from within the bloc remains the main source of foreign capital.

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Cyprus Leads In Non-EU Investment Share

Eurostat measures inward FDI positions by the ultimate investing economy, identifying the economy where the investment ultimately originates rather than only the country through which it is channelled. This distinction is important when investments involve subsidiaries or intermediary holding companies.

In nine of the 14 reporting countries, most foreign investment came from within the EU. The Czech Republic recorded the highest intra-EU share, at 75.1%, followed by Romania at 73.3% and Estonia at 64.8%.

Cyprus was among five countries where non-EU economies accounted for more than half of inward FDI. Spain, Sweden, Greece and Denmark also recorded shares above 50%, ranging from 51% to 55.1%.

US Is The Largest Source Of FDI Across Reporting Countries

Across the 14 countries collectively, the United States was the largest ultimate source of foreign direct investment, accounting for 15.4% of the total.

Germany ranked second at 11.5%, followed by France at 9.4%, the United Kingdom at 9.3% and Switzerland at 5.8%.

These figures reflect the combined investment positions of the reporting countries and do not identify Cyprus’s leading individual investment sources. However, the country-level data underline the island’s strong reliance on capital originating outside the European Union.