Total deposits in Cyprus' banking sector rose to €58 billion in May 2026, driven by a monthly increase that coincided with stronger lending activity across monetary financial institutions.
The figures, released by the Central Bank of Cyprus (CBC), indicate continued confidence in the island's financial system despite broader economic headwinds.
The deposit growth suggests that households and businesses are maintaining or increasing their cash holdings within the local banking system.
Simultaneously, the uptick in lending points to sustained credit demand, a key indicator of economic activity and business investment.
These metrics provide a counterbalance to recent negative data in other sectors of the Cypriot economy.
This banking resilience comes against a backdrop of significant weakness in tourism, a critical pillar of the Cypriot economy.