The banking landscape in Cyprus experienced notable shifts in March 2025, as reported by the Central Bank of Cyprus (CBC). This period saw a substantial increase in loans totaling €429.9 million, contrasting sharply with a decrease of €66.3 million in deposits.
Loan Growth: A Deeper Look
March recorded a sharp increase in total loans, with a rise of €429.9 million compared to February’s modest €42.7 million increase. This hike pushed the annual loan growth rate to 3.1%, from 1.9% previously, with the total loan balance reaching €25.5 billion. Loans to Cyprus residents surged by €269.9 million, largely driven by non-financial corporations, which saw an increase of €188.6 million. Loans to households also saw an uptick of €29.8 million, signaling economic activity amidst the island’s financial environment.
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Shifts in Deposit Dynamics
Conversely, total deposits experienced a net decline of €66.3 million in March, overturning February’s €498.3 million rise. This led to a deceleration in annual deposit growth, slowing to 7.1% from the previous 7.7%. While deposits from households showed a €13.6 million increase and non-financial corporations deposited an additional €400.1 million, other sectors like investment organizations and pension funds withdrew €436.1 million.
The total deposit balance ultimately stood at €55.9 billion, reflecting a complex interplay of financial forces on the island.
These developments come as Cyprus continues to bolster its financial infrastructure, with initiatives like the tourism revenue surge in February showing broader economic trends at play.
