Loan Issuance Issues Despite Increase in Deposits
July 6, 2026
Bank deposits are increasing, but the issuance of new loans remains low. Banks have a strict credit policy and approve loans cautiously. The IMF notes that the Cypriot banking sector is well-capitalized, yet it faces dynamism issues due to non-performing loans. Delays in the judicial process limit lending capabilities. As a result, banks are cautious in granting loans to households and businesses.