Nicosia: Both the criteria for granting loans to businesses and households and the overall terms and conditions for granting new loans remained unchanged in the third quarter of 2025 compared to the previous quarter, according to the Central Bank of Cyprus (CBC) Bank Lending Survey (BLS).
According to Cyprus News Agency, the survey also found that net demand for loans remained unchanged compared to the previous quarter, both from businesses and households. Additionally, banks’ expectations for the fourth quarter of 2025 indicate that the criteria for granting loans to both businesses and households are expected to remain unchanged compared to the third quarter of 2025.
The survey further anticipates an increase in net demand for loans from both businesses and households in the fourth quarter, particularly for housing loans as well as consumer and other loans. In terms of loan supply, the CBC’s Bank Lending Survey reveals that the criteria for granting loans to businesses and households, including housing, consumer, and other loans, remained unchanged in the third quarter of 2025 from the previous quarter.
The survey indicates that all factors related to lending criteria across all categories had a neutral impact during the quarter under review. It also states that the overall terms and conditions for granting new loans or credit lines to businesses and new housing, consumer, and other loans to households remained unchanged in the third quarter of 2025, compared with the previous quarter.
For businesses, the terms remained stable overall, although there was a decrease in interest rates on new business loans and in banks’ margins on standard new business loans, attributed to increased competition from other banking institutions and the perception of reduced risk concerning the general economic situation and prospects.
Regarding households, both the individual terms and conditions and the factors influencing the overall terms and conditions for granting new housing, consumer, and other loans to households had a neutral effect in the quarter under review.
As for loan demand, net demand for loans remained unchanged in the third quarter of 2025, from both businesses and households for housing loans as well as for consumer and other loans. The survey noted that all factors affecting loan demand across all categories had a neutral impact in the quarter under review.