Cyprus banking sector trends report for July 2026

In July 2026, the Central Bank of Cyprus reported a significant shift in the domestic banking sector, characterized by rising deposits and diverging loan trends. Total deposits reached €59.2 billion, marking a net increase of €562.3 million compared to the previous month, with an annual growth rate of 6.2%. Residents of Cyprus contributed €603.2 million to this growth, with households and non-financial corporations increasing their deposits by €195.7 million and €257.1 million, respectively.

Conversely, total loans experienced a net decrease of €68.7 million, reaching a total balance of €28.3 billion. While the annual loan growth rate slowed to 11.1%, local resident data revealed an internal disparity: household borrowing increased by €65.7 million, reflecting continued demand for mortgage and consumer needs. In contrast, non-financial corporations aggressively deleveraged, reducing their loan balances by €79.6 million. These developments illustrate a two-speed economy where private demand for credit remains resilient while the corporate sector adopts a cautious strategy, effectively absorbing the liquidity influx seen in other segments.