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Cyprus Banking Rates Diverge Significantly From Eurozone Benchmarks, CBC Data Reveals

by THEFUTURE.TEAM

September 10, 2025

Central Bank Report Highlights Stark Rate Discrepancies

The Central Bank of Cyprus (CBC) has released its July 2025 report, which underscores a pronounced divergence in financial rates between Cyprus and the broader eurozone. The data reveals that while Cypriot borrowing rates trend considerably higher, deposit rates remain markedly lower than those available within the eurozone.

Household Term Deposits: A Comparative Analysis

For new household term deposits with maturities of up to one year, Cypriot institutions offered an average rate of 1.08 percent compared to 1.72 percent in the eurozone. Notably, the highest rates in Cyprus were provided by Jordan Ahli Bank (1.38 percent) and National Bank (1.35 percent), while traditional players such as Bank of Cyprus and Astrobank lagged behind with lower yields.

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In the realm of existing household term deposits with maturities of up to two years, the gap widens further. The average rate in Cyprus stands at 0.85 percent against a robust 1.99 percent in the eurozone, with leading banks like Jordan Kuwait Bank and National Bank driving higher returns.

Corporate Deposits: Elevated Disparities in Financial Terms

The report also sheds light on non-financial company deposits. New one-year term deposits yielded an average of 1.21 percent in Cyprus, significantly trailing the 1.88 percent in the eurozone. Here again, Alpha Bank led the pack with the highest rate, while institutions such as the Housing Finance Organisation and Societe Generale recorded minimal returns.

For existing corporate deposits with longer maturities, Cypriot rates averaged 1.2 percent, in contrast to 2.11 percent in the eurozone, positioning the domestic market at a clear disadvantage.

Mortgage Lending and Corporate Loan Trends

Mortgage and corporate lending disciplines reflect similar dislocations. New mortgage loan rates in Cyprus averaged 3.9 percent, with Bank of Cyprus topping the scale at 4.96 percent. Existing mortgage contracts also reveal a gap: Cyprus recorded an average of 3.71 percent compared to 2.37 percent across the eurozone.

Corporate loans reinforce this trend. Smaller loans to non-financial companies averaged 4.46 percent in new agreements, while larger loans over €1 million averaged 4.02 percent. Across existing corporate loans, Cypriot banks charged an average of 4.23 percent versus 3.03 percent in the eurozone, with certain banks such as Societe Generale applying rates upward of 5 percent.

Implications for Investors and Borrowers

The data underscores a regulatory and market environment in Cyprus that may impose higher financing costs relative to the eurozone. For both investors and borrowers, these disparities highlight the importance of rigorous due diligence when engaging with Cypriot financial institutions. Comparable to strategic asset allocation in other markets, informed decisions in Cyprus demand a nuanced understanding of local banking dynamics.

Ultimately, the CBC’s detailed disclosure enhances market transparency and affords stakeholders a clearer picture of where Cyprus stands in the competitive landscape of European finance.

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FinTech’s Dominance In MENA: Three Strategic Drivers Behind Unyielding VC Success

by THEFUTURE.TEAM

September 11, 2025

Despite facing tightening global liquidity and macroeconomic headwinds, the FinTech sector continues to assert its leadership in the MENA region. In the first half of 2025, FinTech emerged as the most resilient and appealing arena for venture capital investments, proving its worth as a catalyst for financial innovation and inclusion.

Addressing Structural Financial Gaps

In many parts of MENA, a significant proportion of the population remains underbanked and underserved by traditional financial institutions. FinTech companies are uniquely positioned to address these persistent challenges by bridging critical access gaps and driving financial inclusion. With the proliferation of payment apps, digital wallets, and micro-lending platforms, investors have witnessed firsthand how these solutions pave the way for scalable growth and eventual exits. Early-stage momentum in the region is underscored by a doubling of pre-seed deals year-over-year, reinforcing the sector’s capacity for rapid innovation and sustainable expansion.

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Highly Scalable and Replicable Business Models

One of the key factors behind FinTech’s dominance is the inherent scalability of its business models. Once the necessary infrastructure and regulatory approvals are in place, these models have demonstrated robust performance across borders. The first half of 2025 saw a marked acceleration in deal activity, with payment solutions leading the charge with 28 deals in MENA—a significant increase over the previous year. Lending platforms, in particular, experienced a meteoric 500% year-over-year increase in funding, emerging as the fastest-growing subindustry. Such replicability makes FinTech an attractive proposition for investors seeking high-growth opportunities in diverse markets.

Supportive Regulatory And Government Backing

The strategic support offered by key government initiatives in the UAE and Saudi Arabia has been instrumental in propelling the FinTech sector forward. Progressive frameworks, such as the UAE’s open finance and digital asset directives, coupled with Saudi Arabia’s live-testing sandboxes, have materially lowered entry barriers for startups. These measures not only foster innovation but also streamline the path to commercialization. Consequently, the combined efforts of these regulatory bodies have enabled the UAE and Saudi Arabia to account for 86% of MENA’s total FinTech funding in H1 2025.

The resilience of FinTech in MENA is not merely a reflection of contemporary market trends—it signals a fundamental shift in the region’s economic fabric. With an unwavering commitment to addressing real financial challenges, scalable and replicable business practices, and robust regulatory support, FinTech is setting the benchmark for sustainable innovation. As capital markets become increasingly discerning, this sector stands out as a beacon of long-term growth and transformative impact.