Deposit interest rates in Cyprus remained the lowest in the eurozone in June, despite increases in returns offered to households and businesses, according to data published by the Central Bank of Cyprus (CBC) on Monday.
The interest rate on household deposits with an agreed maturity of up to one year rose to 1.42% in June from 1.25% in May. The rate on deposits from non-financial corporations increased to 1.41% from 1.31% a month earlier.
However, the CBC said deposit rates in Cyprus continued to stand out as the lowest in the eurozone.
According to the central bank, the trend may be linked to the high level of excess liquidity held by credit institutions in Cyprus, which is among the highest in the eurozone, as well as the relatively limited size of the country's banking sector.
The Liquidity Coverage Ratio (LCR) in Cyprus stood at 310% in June 2026, compared with a European Union median of 189% and a mean of 158% recorded in March 2026.
The CBC also noted that interest rates on new deposits in Cyprus are broadly in line with rates on existing deposits.
Lending rates
Consumer lending rates fell to 6.50% in June from 6.95% in the previous month, while the rate on housing loans edged down to 4.04% from 4.06%.
By contrast, borrowing costs for businesses increased.
The interest rate on loans to non-financial corporations of up to €1 million rose to 4.32% from 4.27%, while the rate on loans exceeding €1 million increased to 4.07% from 3.85%.
The CBC said lending rates in Cyprus remained broadly comparable with the eurozone median.
The spread between the weighted average interest rate on housing loans and the eurozone median stood at minus 0.2 percentage points, while the corresponding spread for loans to non-financial corporations was 0.3 percentage points.
New lending rises
Pure new lending increased to €626.2 million in June from €361.9 million in May.
New consumer loans rose to €25.1 million from €23.9 million, while new housing loans increased to €152.1 million from €145.5 million.
New loans to non-financial corporations of up to €1 million fell to €54.5 million from €63.4 million.
Meanwhile, new loans exceeding €1 million more than tripled, rising to €387.5 million from €121.5 million in the previous month.
Total new lending, including renegotiated and restructured facilities, amounted to €831.3 million in June, compared with €594.5 million in May.
