Cyprus sees a rise in new loans and deposits in October: what the numbers reveal about the island’s economy

It’s interesting to watch how Cyprus’s financial system in 2025 keeps gaining resilience step by step. The Central Bank has released fresh data, and it honestly gives a reason to look at the island’s economy a bit more optimistically. The overall volume of new loans and deposits increased once again, even if not evenly across all sectors.

A closer look at the details shows a pretty dynamic picture. The total volume of new loans grew by 336.6 million euros, noticeably higher than September’s increase. On a year-on-year basis, the loan portfolio accelerated to 10,2% compared to 7,9% a month earlier. By the end of October, total outstanding loans reached an impressive €26.8 billion.

Households continue to show confidence: loans to households climbed by another €61.1 million. This most likely reflects sustained demand for mortgage lending and consumer loans, which traditionally support both the construction sector and retail activity. Businesses, however, appear more cautious. Loans to non-financial corporations declined by €34.5 million, possibly indicating that companies prefer to wait for clearer economic signals before engaging in new projects. Other domestic sectors added a modest €3.8 million.

Against these mixed trends, the deposit side of the banking system remains notably stable. The volume of deposits increased by €412.3 million. Yes, September’s result was stronger, but the annual growth rate remains steady at 6,3%, and the total deposit portfolio confidently holds at around €57.6 billion.

Deposits from Cyprus residents grew particularly strongly, rising by €421.2 million. Households contributed €158.7 million, while non-financial companies added €206.9 million. It seems both families and businesses continue to accumulate liquidity, reflecting confidence in the banking sector and a willingness to preserve capital during uncertain periods.

When you look at all these numbers together, the picture becomes clearer. Growing lending to households supports demand for real estate, goods and services — the very segments that keep the island’s economy moving forward. The steady increase in deposits suggests that people feel financially secure and that banks maintain strong liquidity positions.

The only point that requires attention is the decline in corporate borrowing. Companies may be waiting for more predictable global conditions before returning to active expansion. But overall, the balance of indicators looks healthy. The financial system is strengthening, consumers remain active, and banks appear to be entering a phase of stable recovery.