The Central Bank of Cyprus reported increases in lending and deposit activity for March 2026. The data show changes in credit expansion and liquidity conditions across the banking system.
Substantial Loan Growth
Total loans increased by €528.1 million in March, compared with a €326.2 million rise in February. The annual growth rate reached 12.6%, up from 12.3% in the previous month. As a result, the total outstanding loan balance rose to €27.9 billion, reflecting continued expansion in credit activity.
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Focus On Residential And Corporate Lending
Loans to Cyprus residents increased by €72.3 million. Within this total, household lending rose by €52.3 million, while loans to non-financial corporations increased by €37.3 million. At the same time, lending to other domestic sectors declined by €17.3 million, indicating a shift in the distribution of credit across segments.
Enhanced Deposit Activity Bolsters Liquidity
Deposit activity also increased during the same period. Total deposits rose by €426.8 million in March, compared with €202.2 million in February. This development pushed the annual growth rate to 5.6% from 4.7%, with the total deposit balance reaching €57.8 billion.
Diverse Contributions Across Sectors
Deposits from Cyprus residents increased by €344.1 million. Within this category, household deposits declined by €138.1 million, while deposits from non-financial corporations rose by €158.3 million. In parallel, deposits from other domestic sectors increased by €323.9 million. These sectors include investment organizations, financial intermediaries, auxiliary financial institutions, insurance companies, pension funds, and government entities.
Market Resilience And Forward-Looking Insights
Taken together, the data show increases in both lending and deposit activity across the banking system. Credit expansion and deposit inflows are moving in parallel, affecting overall liquidity conditions. Future developments will depend on credit demand, deposit behaviour, and broader economic conditions.







