Net demand for business and household loans unchanged in Q4 2024

10:32 - 07 March 2025

Financial Services

Net demand for business loans and housing loans from households remained unchanged in the fourth quarter of 2024, according to the Bank Lending Survey (January 2025) of the Central Bank of Cyprus (CBC).

On the other hand, the Survey said that a decrease was recorded in net demand for consumer and other loans, which is attributed to reduced spending on consumer durable products.

According to banks' expectations for the first quarter of 2025, lending criteria for both businesses and households are expected to ease, while net demand for loans from businesses and households is expected to increase.

It says that survey results reflect the perceptions and expectations of the banks participating in the survey and do not reflect any perceptions, expectations or assessments of the CBC.

Lending criteria for businesses and households, for housing as well as for consumer and other loans, remained unchanged in the fourth quarter of 2024, compared to the previous quarter.

All factors related to lending criteria, across all categories, had a neutral impact during the quarter under review.

In addition, the overall terms and conditions for new loans to businesses and for housing, consumer and other loans to households eased during the fourth quarter of 2024.

A decrease in interest rates and bank margins was recorded across all loan categories, for both standard and higher-risk loans.

Concluding, the CBC said that the relaxation in the overall terms and conditions for new loans reflects banks’ perception of reduced risk.

Net demand for business and household loans unchanged in Q4 2024

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