Central Bank of Cyprus reports on 2025 monetary policy and banking trends

The Central Bank of Cyprus (CBC) released its 2025 report titled “The implementation of monetary policy in Cyprus,” detailing key developments in the national banking sector. Excess liquidity in the Cypriot banking system decreased from €18.4 billion at the end of 2024 to €17.4 billion by the end of 2025. The value of the central bank’s monetary policy bond portfolio, comprising APP and PEPP securities, declined from €6.5 billion to €5.7 billion. Total assets of the CBC remained stable, recording a marginal increase from €28.6 billion to €28.7 billion over the year. Lending activity saw significant growth, with total loans rising from €27.6 billion to €31.7 billion. While deposits and cash equivalents held by the sector dropped from €20.4 billion to €19.8 billion, total banking sector liabilities increased from €59.4 billion to €63.1 billion. The CBC attributed the rise in liabilities primarily to an increase in deposits from households and non-financial corporations.