The banking sector in Cyprus experienced notable growth in deposits and lending in May 2026, according to Central Bank of Cyprus data. Total deposits increased by €343.8 million, reversing a decline from April, with the total deposits reaching €58 billion. Deposit growth was driven primarily by Cyprus residents, whose deposits rose by €239 million, supported by increases in household and non-financial corporate savings.

Simultaneously, lending expanded significantly, with total loans climbing by €260.3 million in May, a marked increase from April's €40.5 million increase. The outstanding loan balance rose to €28.1 billion. Loans extended to Cyprus residents increased by €173.7 million, including higher lending to households, non-financial corporations, and other domestic sectors. The data highlights a stronger liquidity position and increased credit activity within the Cypriot economy during the month.