Both the criteria for granting loans to businesses and households and the overall terms and conditions for granting new loans remained unchanged in the third quarter of 2025 compared to the previous quarter, according to the Central Bank of Cyprus (CBC) Bank Lending Survey (BLS).
Also, according to the survey, net demand for loans remained unchanged compared to the previous quarter, both from businesses and households.
In addition, according to banks' expectations for the fourth quarter of 2025, the criteria for granting loans to both businesses and households, for both categories of loans, are expected to remain unchanged compared to the third quarter of 2025.
At the same time, it is stated that net demand for loans from both businesses and households is expected to increase in the fourth quarter, for housing loans as well as consumer and other loans.
In particular, in terms of loan supply, according to the CBC's Bank Lending Survey, the criteria for granting loans to businesses and households, for housing, consumer and other loans, remained unchanged in the third quarter of 2025 compared to the previous quarter.
According to the Survey, all factors related to lending criteria, across all categories, had a neutral impact during the quarter under review.
It is further stated that the overall terms and conditions for granting new loans or credit lines to businesses and new housing, consumer, and other loans to households also remained unchanged in the third quarter of 2025, compared with the previous quarter.
For businesses, these remained stable overall, although, according to the Survey, there was a decrease in interest rates on new business loans and in banks' margins on standard new business loans, due to increased competition from other banking institutions and the perception of reduced risk in relation to the general economic situation and prospects.
With regard to households, both the individual terms and conditions and the factors influencing the overall terms and conditions for granting new housing, consumer and other loans to households had a neutral effect in the quarter under review.
As regards loan demand, net demand for loans remained unchanged in the third quarter of 2025, both from businesses and households for housing loans as well as for consumer and other loans.
According to the Survey, all factors affecting loan demand, across all categories, had a neutral impact in the quarter under review.
(Source: CNA)
