Cyprus Banking Sector: Unprecedented Liquidity And Strength Amid Economic Recovery

by THEFUTURE.TEAM

December 2, 2025

Record Liquidity Levels Signal Market Confidence

The banking system in Cyprus has reached historic levels of liquidity, with excess deposits surpassing loans by €30.8 billion in October 2025. According to the Central Bank of Cyprus (CBN), total deposits hit €57.6 billion while loans remained at €26.8 billion, marking the highest liquidity surplus recorded since 2007.

Historical Trends and Market Resilience

From a turnaround in 2013—when loans exceeded deposits by approximately €17 billion—the sector has experienced a significant shift. Confidence began to stabilize as early as April 2018, when deposits first outpaced loans by €1.9 billion, with the surplus increasing to €8.7 billion by year’s end. Subsequent years have seen this gap widen steadily, reaching €30.5 billion in 2024, fueled by robust corporate and household savings. Noteworthy is the record €12.5 billion in corporate deposits reported in August 2025, reinforcing the system’s resilience.

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Strong Liquidity Coverage and Stability in the European Context

Cypriot banks not only report impressive liquidity metrics but also maintain some of the highest liquidity coverage ratios in the European Union. Currently at 335 percent—well above the regulatory minimum of 100 percent—these figures echo the positive reviews from recent analyses of both Cypriot and European banks. August’s review has highlighted these strengths, while institutions like Bank of Cyprus have shown continuous improvement, with their Group LCR reaching 313 percent in September 2025.

Liquidity Allocation and Economic Implications

Despite the robust figures, there is an ongoing debate regarding the deployment of this surplus liquidity. Some analysts argue that a significant portion remains parked with the European Central Bank rather than being allocated to new lending initiatives. This observation raises important considerations about the role of the banking sector in fueling real economic growth.

Global Interest and Future Outlook

The combination of strong deposit growth, high solvency, and historic liquidity levels has cemented confidence in Cyprus’ banking system. Renewed international interest, as noted in recent coverage, underscores the market’s trust in the island’s financial stability. This evolving scenario presents both opportunities and challenges, as market participants and regulators navigate the balance between preserving liquidity and promoting sustainable lending practices.

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Cyprus Expects More French Visitors In 2027 As Air Capacity Expands

by THEFUTURE.TEAM

September 18, 2026

Cyprus expects more French visitors in 2027 as airlines increase capacity between the two countries, Tourism Deputy Minister Kostas Koumis said after meetings with tour operators in Paris.

France, one of Cyprus’ key tourism markets, has had a difficult 2026. French arrivals fell 46% year over year to 8,453 in August, from 15,663 a year earlier, according to the Statistical Service of Cyprus (Cystat). August arrivals were also nearly 50% below the 16,798 recorded in the same month of 2024.

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Overall, Cyprus received 2.82 million tourist arrivals between January and August, down 7% from the same period in 2025.

Air Connectivity Supports 2027 Outlook

Koumis discussed the 2027 outlook with senior executives from tour operators offering Cyprus holidays during the IFTM Top Resa travel trade fair in Paris.

Higher air capacity between France and Cyprus was a key focus of the talks. Participants also discussed the impact of geopolitical tensions in the Middle East on the French market and Cyprus’ efforts to adapt its tourism offering to French travelers.

“The French market is undoubtedly an extremely important market for our country’s tourism,” Koumis said, adding that France had regained importance only a few years ago and still had room to grow.

Improved air connectivity will be an important factor in that expansion, according to Koumis. “It is now clear that air connectivity between France and Cyprus is improving significantly, which is a basic prerequisite for the further growth of the market,” he said.

Cyprus Promotes Tourism And Regional Cooperation

Koumis attended the opening of IFTM Top Resa at the invitation of French Tourism Minister Serge Papin, who later visited the Cyprus stand. Held from Sept. 15 to 17 at Paris Porte de Versailles, the event brought together more than 32,000 tourism professionals representing 177 destinations and 1,650 brands, according to organizers.

During his visit, Koumis also met Egyptian Tourism Minister Sherif Fathy. Cyprus and Egypt reaffirmed their tourism cooperation and discussed opportunities to strengthen ties further.

French media interviews covered Cyprus’ tourism offering, infrastructure and services, along with efforts to develop specialized tourism products. Regional instability weighed on arrivals in 2026, particularly during the spring, although the decline narrowed over the summer.

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