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Cyprus Banks Offer Low Deposit Returns Despite High Liquidity, CBC Data Shows

by THEFUTURE.TEAM

November 4, 2026

Banks in Cyprus continue to offer some of the eurozone’s lowest deposit rates despite holding substantial liquidity, while borrowing costs remain broadly in line with European levels. New figures from the Central Bank of Cyprus (CBC) show that interest-rate changes are being passed on to borrowers more readily than to savers.

September brought some improvement in deposit returns, but Cyprus remained near the bottom of the eurozone rankings.

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Deposit Rates Rise But Remain Among The Lowest

The average rate on new household deposits with an agreed maturity of up to one year increased to 1.62% in September 2026, from 1.35% in August. For non-financial corporations, the rate rose to 1.70%, compared with 1.56% a month earlier.

Despite the increases, the CBC said rates on both new and outstanding deposits remained among the lowest in the eurozone. The transmission of market-rate changes to depositors was also weaker in Cyprus than in almost all other member states.

One factor is the high liquidity held by local banks. Cyprus’s Liquidity Coverage Ratio reached 305% in September 2026, compared with an EU median of 182% and an average of 158% in June, the latest available comparison cited by the CBC. The relatively short maturity profile of the banking sector may also contribute.

High liquidity has therefore not translated into more competitive returns for savers, raising questions about how strongly banks compete for deposits and how quickly they pass on changes in market rates.

Borrowing Costs Remain Close To Eurozone Levels

Interest rates on new household loans declined in September. Housing loan rates fell to 3.88%, from 4.16% in August, while consumer credit rates dropped to 6.45%, from 7.12%.

Business borrowing moved in the opposite direction. Rates on new loans of up to €1 million to non-financial corporations increased to 4.76%, from 4.45%. For loans above €1 million, the average rose to 4.40%, compared with 3.67%.

Despite these monthly movements, lending rates in Cyprus remained broadly comparable with eurozone levels. Rates on outstanding household loans were 0.1 percentage points below the eurozone median, while those for businesses were 0.3 points higher. For new lending, housing loan rates were 0.2 points below the median and business loan rates 0.3 points above it.

The CBC also found that monetary policy changes were reflected in outstanding lending rates broadly in line with developments elsewhere in the eurozone. Between June 2024 and August 2026, lending rates declined during the monetary easing period. For new business loans, the pass-through of rate cuts was stronger in Cyprus than the pass-through of earlier rate increases.

New Lending Nearly Doubles

New lending increased sharply in September. Pure new loans reached €596.2 million, compared with €251.4 million in August. Including other categories, total new lending rose to €896.8 million from €390.1 million.

Pure new housing loans increased to €135.1 million from €114.4 million, while consumer lending rose to €32.2 million from €19.3 million.

Business lending recorded the strongest movement. Pure new loans of up to €1 million reached €45.4 million, compared with €35.5 million in August. For loans above €1 million, new lending surged to €376.7 million from €77 million.

Borrowers Shift Away From Floating Rates

The CBC report also highlights a significant change in borrowers’ interest-rate preferences.

The share of new household housing loans with variable rates fell from nearly 100% at the beginning of 2022 to 9.8% in September 2026, below the eurozone median. The CBC suggested that some borrowers may initially have chosen fixed-rate loans with terms of three to five years, which later convert to floating rates.

Across new lending to households and non-financial corporations, the proportion of loans carrying floating rates also declined, from almost 100% in early 2022 to 73.8%. This remained slightly above the eurozone median.

The central bank said these changes in borrower preferences should be considered by banks when developing their risk-management policies.

The Gap Between Deposit And Lending Rates

September’s figures present a mixed picture. Deposit returns improved, while households benefited from lower rates on new housing and consumer loans. However, savers in Cyprus continue to receive comparatively low returns, despite the banking sector’s substantial liquidity.

The figures highlight an imbalance in how market-rate changes reach customers. While borrowing costs remain broadly aligned with eurozone levels, deposit rates have been slower to respond, leaving households and businesses with limited returns on their savings.

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Binance Details Months-Long Cyberattack Behind $6.34 Billion Crypto Theft

by THEFUTURE.TEAM

November 4, 2026

Binance has disclosed how attackers used fake software downloads, fraudulent job interviews and compromised internal tools to breach its wallet infrastructure in an October 29 cyberattack that resulted in the theft of more than $6 billion in digital assets.

The incident was not caused by a single employee mistake, Binance co-CEO Richard Teng told CNBC’s “Squawk on the Street”. Instead, attackers spent months building access before reaching the system responsible for authorising wallet transactions.

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“They spent months building their way in,” Teng said, describing a sequence involving a compromised developer tool, malware hidden in a coding exercise and access to internal AI systems.

How Attackers Reached Binance’s Wallet Infrastructure

According to Binance’s security report, the operation began in June when a Wallet DevOps engineer downloaded a modified Homebrew installation while searching online for a popular AI coding tool.

Binance detected suspicious activity, replaced the engineer’s device and rotated credentials. However, the company said the engineer’s role and the work of colleagues on the wallet infrastructure team had already been exposed.

In September, attackers allegedly posed as recruiters and interviewed another engineer. A coding exercise contained hidden malware designed to evade security controls, Teng said. The attackers subsequently moved through internal AI tools and gained access to the system authorising wallet transactions.

Teng did not directly attribute the attack to North Korea, but said the FBI had linked it to North Korean hackers associated with the TraderTraitor group.

Binance Recovers Most Affected Assets

Binance said it has replenished 98% of the $6.34 billion in affected assets and is working to acquire the remaining, less-liquid holdings. The exchange temporarily restricted certain withdrawals, committed to covering customer losses and used its reserves to restore affected funds.

The company and industry partners, including Tether, Circle and Ripple, have reportedly frozen around $3 billion in assets. However, some stolen funds continue to move through laundering channels.

Coinbase has also blocked transfers to compromised wallets and offered assistance to Binance.

Security Overhaul And Industry Confidence

Following the breach, Binance rebuilt the affected wallet system and internal AI tool, replaced compromised devices, revoked credentials and tokens associated with the engineers involved, and expanded security scans across employee devices.

The exchange has also commissioned an independent expert to review its response and security measures. Teng said Binance would continue strengthening its defences while working with law enforcement and industry partners to trace and freeze the stolen funds.

The incident has renewed questions about the security of centralised crypto exchanges. Although Binance maintains that it remains financially sound, attention is now focused on recovering the remaining assets and demonstrating that its security controls can withstand increasingly sophisticated attacks.