Normal Operations of Cypriot Banks Amid Geopolitical Crisis
March 12, 2026
Cypriot banks are operating normally despite the uncertainty caused by the war in the Middle East. Customers continue to apply for loans, both for cars and mortgages. Bank management appears reassuring about the quality of their loans and the resilience of the Cypriot economy. However, there is uncertainty about the future if the geopolitical crisis lasts more than three months. Overall, banks seem confident about their loan situation but are concerned about potential impacts of the crisis on credit expansion.