Bank lending accelerates while deposits decline in March, Central Bank says

07:41 - 30 April 2025

Financial Services Reporter

Cypriot banks reported a net decrease of €66.3 million in deposits and a significant increase of €429.9 million in loans for March 2025, according to data released by the Central Bank of Cyprus, with the annual loan growth rate accelerating to 3.1%.

According to the data, total deposits recorded a net decrease of €66.3 million, in contrast to a net increase of €498.3 million in February. The annual growth rate of deposits slowed to 7.1%, down from 7.7% the previous month, while the total outstanding balance of deposits stood at €55.9 billion.

Deposits from Cyprus residents fell by €22.5 million. Despite an increase in deposits by households (€13.6 million) and non-financial corporations (€400.1 million), the remaining domestic sectors — including investment funds, insurance companies, and pension funds — posted a decline of €436.1 million, dragging down the overall figures.

In contrast, lending activity saw a notable rise. Total loans recorded a net increase of €429.9 million in March, compared to €42.7 million in February. The annual growth rate of loans climbed to 3.1%, up from 1.9%, with the outstanding loan balance reaching €25.5 billion.

Specifically, loans to Cyprus residents increased by €269.9 million. This growth was mainly driven by loans to non-financial corporations (€188.6 million), while household loans rose by €29.8 million. Loans to other domestic sectors also increased by €51.5 million.

(Source: CNA)

Bank lending accelerates while deposits decline in March, Central Bank says

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