The Central Bank of Cyprus released February 2026 statistics on monetary financial institutions’ average interest rates on euro-denominated deposits and loans to euro area residents, alongside volumes of new lending. The update shows broad month-on-month declines in key deposit and lending rates and higher net new loan flows. For new deposit business (including renegotiations), the household rate on deposits with a maturity of up to one year edged down to 1.19% (from 1.20%), while the corresponding rate for non-financial corporations fell to 1.19% (from 1.34%). Lending rates also declined, including consumer loans to 7.12% (from 7.20%), housing loans to 3.45% (from 3.70%), and loans to non-financial corporations to 4.22% for amounts up to EUR 1 million (from 4.32%) and 4.15% for amounts above EUR 1 million (from 4.34%). Net new loans increased to EUR 328.7 million out of EUR 435.1 million total new loans, with net new consumer lending at EUR 20.1 million, housing lending at EUR 115.1 million, and net new lending to non-financial corporations at EUR 47.5 million (up to EUR 1 million) and EUR 137.3 million (above EUR 1 million). In its euro area comparison, Cyprus lending rates on outstanding balances were reported as close to the euro area median, with a spread of 0.0% for households and 0.4% for non-financial corporations, while deposit rates were described as the lowest in the euro area, which the Bank linked to high liquidity (Liquidity Coverage Ratio of 330% in February 2026, versus an EU median of 186% and average of 163% in December 2025). For new business, the weighted average spread versus the euro area median was -0.4% for household housing loans and 0.3% for corporate loans, while pass-through to Cyprus was described as weaker for new corporate lending and for new deposits; the tightening pass-through was lower than easing by 11.8% for non-financial corporations and, for deposits, by 5.4% for households and 19.4% for non-financial corporations. The share of new household housing loans with a variable rate fell to 15.7%, and variable-rate lending across new household and corporate loans declined to 53.4%, which the Bank noted should be reflected in banks’ risk management policies.
Central Bank of Cyprus 2026-04-06
Central Bank of Cyprus publishes February 2026 MFI interest rate statistics with net new loans rising to EUR 328.7 million
The Central Bank of Cyprus published February 2026 data showing broad month-on-month declines in euro-denominated deposit and lending rates and higher net new loan flows, with total net new lending at EUR 328.7 million. Cyprus lending rates on outstanding balances were close to the euro area median, while deposit rates were the lowest in the euro area, which the Bank linked to high banking system liquidity. The share of new variable-rate lending fell to 53.4% across household and corporate loans, with variable-rate housing loans to households down to 15.7%, a trend the Bank said is relevant for banks’ risk management.