The Central Bank of Cyprus reports a net decline of €123.1 million in total deposits for April, completely reversing March's strong gains. Concurrently, credit expansion slowed to a crawl, highlighting a broader cooling trend across the island’s financial landscape.

Data released by the Central Bank of Cyprus reveals that total deposits in the banking system recorded a net decline of €123.1 million in April 2026. This sharp drop effectively erased the robust net increase of €426.8 million achieved during the previous month. As a result, the annual growth rate of total deposits softened to 4.5%, down from 5.6% in March, leaving the island's outstanding stock of deposits at €57.6 billion.

Despite the overarching contraction, local depositors showed surprising resilience. Deposits from Cyprus residents actually grew by €30.1 million overall. This domestic stability was spearheaded by local household savings, which rose by €122.6 million, alongside a €63 million increase from non-financial corporations. However, these positive shifts were entirely wiped out by a heavy €155.5 million reduction in funds held by other domestic sectors.

Lending activity mirrored the sluggish deposit market, recording a massive drop-off in momentum. While credit extension remained net positive, total loans increased by a meager €40.5 million in April—a stark contrast to the massive €528.1 million surge seen in March. The annual credit growth rate subsequently ticked downward from 12.6% to 12.0%, settling the outstanding loan balance at €27.8 billion.

A closer look at the credit data reveals that corporate borrowing remains the primary driver of remaining loan growth. Loans to Cyprus residents rose by €76.1 million, fueled almost entirely by non-financial corporations, which added €71.7 million to their credit balances. Conversely, household borrowing dipped into negative territory, shrinking by €12.1 million over the course of the month.

Source: CNA(ΚΥΠΕ)