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Cyprus Deposits And Loans Post Strong Gains In June As Corporate And Household Activity Accelerates

Deposits and loans in Cyprus recorded strong net increases in June 2026, according to data released on Monday by the Central Bank of Cyprus. Deposit balances expanded at a faster pace than in May, while lending also increased despite a slight slowdown in annual loan growth.

Deposits Rise By €601.2 Million

Total deposits increased by a net €601.2 million in June, compared with a €343.8 million increase in May, bringing the overall deposit balance to €58.7 billion. The annual growth rate eased slightly to 5% from 5.1% a month earlier.

Deposits held by Cyprus residents rose by €626.2 million. Household deposits increased by €49.7 million, while deposits from non-financial corporations climbed by €480.3 million. Deposits from other domestic sectors rose by a combined €96.2 million.

Loan Balances Also Expand

Total loans increased by €499.4 million in June, up from a net increase of €260.3 million in May. Outstanding loan balances reached €28.6 billion. Annual loan growth slowed to 11.6% from 12.6% in May.

Loans to Cyprus residents rose by €213.7 million, driven by a €131.4 million increase in household lending and a €90.1 million rise in loans to non-financial corporations. Lending to other domestic sectors declined by €7.8 million overall.

Key Takeaways

June’s figures showed stronger monthly growth in both deposits and loans compared with May, while annual deposit growth remained broadly stable and annual loan growth moderated slightly.

Deposits continued to be supported by households and businesses, with non-financial corporations accounting for the largest monthly increase. Lending also expanded across the household and corporate sectors despite the slower annual growth rate.

Retail’s AI Push Faces A Cybersecurity And Regulatory Reality Check

Artificial intelligence is becoming a strategic priority for retailers, with 80% of retail leaders planning to increase investment in the technology, according to EY’s latest CEO Outlook Survey. However, growing concerns over cybersecurity, customer privacy and regulation could complicate adoption across an industry already facing inflation, geopolitical uncertainty and changing consumer expectations.

Confidence In AI Comes With Risks

The survey found that 80% of retail leaders are confident in their ability to expand the responsible use of AI and customer data. Retailers are increasingly applying the technology to demand forecasting, inventory management, customer service and personalised marketing, seeking to improve efficiency and respond more quickly to market changes.

Yet adoption brings new vulnerabilities. EY found that 24% of retail leaders identified cybersecurity and data privacy as a leading business risk for the year ahead. Retailers manage sensitive customer information, payment systems and complex supply chains, making effective security and governance essential as AI becomes more deeply embedded in their operations.

The World Economic Forum’s Global Cybersecurity Outlook 2026 highlights the wider challenge: 87% of organisations reported rising cyber risks linked to AI vulnerabilities, while 94% expected malicious AI to have a significant impact on cybersecurity in 2026.

Regulation Will Shape AI Adoption

Regulatory frameworks are also influencing how quickly retailers can expand their use of AI. The European Union’s AI Act, China’s state-led governance model and measures introduced by individual US states are shaping the rules around the technology.

For retailers, compliance is becoming a strategic consideration, particularly for customer-facing applications that use personal data to personalise offers, automate interactions or analyse consumer behaviour. Regulatory missteps could carry significant costs in a sector where customer trust is critical.

EY Outlines Four Possible Futures

EY recommends that retailers plan for multiple outcomes rather than assume the current investment boom will continue uninterrupted. Its analysis draws on a four-scenario framework developed by Jim Dator of the University of Hawaii.

One scenario envisages constrained AI adoption as economic pressures, regulation, cyberattacks, legacy systems and poor data quality limit progress. Retailers in this environment may prioritise lower-risk back-office applications, such as finance, procurement, inventory and logistics, while customer-facing tools face resistance.

A second scenario anticipates continued growth, with sustained investment and widespread adoption. A third envisages deeper economic and social transformation as technology reshapes business operations. The fourth considers systemic breakdown, in which a small number of technology platforms control access to AI models and charge premium prices, potentially making advanced capabilities less accessible even to large retailers.

Governance Will Determine Competitive Advantage

EY’s findings suggest that investment alone will not determine which retailers benefit most from AI. Companies will also need robust cybersecurity, effective governance and strategies that can adapt to different economic, technological and regulatory conditions.

For a sector operating on tight margins, the challenge is to turn AI investment into lasting business value while managing the risks that come with greater dependence on the technology.

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