Banks in Cyprus recorded a net decrease of €66.3 million in deposits and a significant increase of €429.9 million in loans during March 2025, according to a report by the Central Bank of Cyprus (CBC).

The CBC also reported that the annual rate of credit expansion rose to 3.1 per cent.

Total deposits showed a net decline of €66.3 million, reversing the net increase of €498.3 million recorded in February.

The annual deposit growth rate slowed to 7.1 per cent from 7.7 per cent in the previous month.

Furthermore, the total deposit balance stood at €55.9 billion.

Deposits from Cyprus residents decreased by €22.5 million.

Although deposits by households increased by €13.6 million and by non-financial corporations by €400.1 million, other domestic sectors, including investment organisations and pension funds, recorded a decline of €436.1 million.

This offset the gains in household and corporate deposits, negatively affecting the overall deposit figures.

In contrast, loans recorded a sharp rise. Total loans increased by €429.9 million in March, compared to a €42.7 million increase in February.

The annual rate of loan growth accelerated to 3.1 per cent, up from 1.9 per cent. The total loan balance reached €25.5 billion.

What is more, the report showed that loans to Cyprus residents rose by €269.9 million.

This increase was mainly driven by loans to non-financial corporations, which rose by €188.6 million.

Loans to households, meanwhile, increased by €29.8 million.

Finally, other domestic sectors also saw loan growth of €51.5 million.