Central Bank report shows stable lending criteria with rising household loan demand

According to the Bank Lending Survey conducted by the Central Bank of Cyprus for the second quarter of 2026, bank lending criteria for both businesses and households remained unchanged compared to the first quarter. Terms and conditions for new loans and credit lines also remained stable, with all underlying factors exerting a neutral impact on credit policy.

Despite the stable supply conditions, the survey recorded an increase in the demand for loans from households for both housing and consumer purposes. Furthermore, while general lending terms remained consistent, interest rates for new housing loans increased during this period. The report attributes this upward adjustment in mortgage interest rates to the tightening of monetary policy by the European Central Bank.