bank deposits — Cyprus bank deposits have reached a remarkable €58 billion following a monthly increase in May 2026, as reported by the Central Bank of Cyprus (CBC). This rise comes after a net increase of €343.8 million in deposits, effectively reversing the decline of €123.1 million observed in April.
Bank deposits: Steady Growth in Deposits
The year-on-year growth rate of deposits has accelerated to 5.1 per cent, up from 4.5 per cent in the previous month. Notably, deposits held by Cyprus residents rose by €239 million during May, reflecting a robust trend in domestic savings.
Households and Corporations Contributing
Household deposits saw a notable increase of €171.3 million, indicating a continued commitment to saving among individuals. Non-financial corporations also played a significant role in enhancing liquidity, with their deposits increasing by €194 million. However, deposits from other domestic sectors experienced a decline of €126.2 million.
Lending Activity on the Rise
In conjunction with the growth in deposits, lending activity in Cyprus has significantly picked up. Total loans recorded a net rise of €260.3 million in May, a substantial increase compared to the €40.5 million rise noted in April. This increase has pushed the year-on-year growth rate of loans to 12.6 per cent, rising from 12.0 per cent the previous month.
Details of the Lending Landscape
By the end of May, the total outstanding balance of loans stood at €28.1 billion. Loans extended to Cyprus residents increased by €173.7 million, with household lending specifically rising by €52.7 million. Non-financial corporations also contributed to this growth, witnessing an increase of €63 million in their borrowing. Lending to other domestic sectors expanded by €58 million, indicating a broad-based strengthening in credit growth.
The recent figures from the CBC underscore a positive trend in Cyprus’ banking sector, characterised by increased deposits and an upward trajectory in lending activity, marking a significant shift in the financial landscape.
