Cypriot banking sector shows growth in deposits and loans for September 2026

Data released by the Central Bank of Cyprus (CBC) for September 2026 reveals a significant expansion in both banking deposits and loans. Total deposits in the domestic system reached €60.2 billion, marking a net monthly increase of €697.1 million, a substantial rise compared to the €171.5 million recorded in August. Residents of Cyprus accounted for €639.9 million of these inflows, primarily driven by non-financial corporations, which added €373 million, and households, which contributed €93.8 million.

Simultaneously, total loans saw a notable surge, with a net increase of €857.8 million, bringing the total outstanding balance to €29.6 billion. This growth accelerated the annual loan growth rate to 14%, compared to 11.8% in August. The Central Bank highlighted that the banking system is now heavily reliant on domestic liquidity, as foreign deposits have largely stabilized or declined since previous decades. Furthermore, the CBC’s balance sheet for the period reflects sufficient liquidity and zero borrowing from monetary policy mechanisms, according to Governor Christodoulos Patsalides. The current banking model now operates in strict alignment with European regulations, focusing on domestic business and household stability.