Cyprus banks report stable lending standards in second quarter
Cyprus banks kept lending standards unchanged in the second quarter of 2026 as household credit demand strengthened and Middle East uncertainty affected some business investment plans.
Nicosia, Cyprus. Cyprus banks maintained unchanged lending standards for businesses and households in the second quarter of 2026, while household demand for credit increased, the Central Bank of Cyprus said. Uncertainty linked to the Middle East crisis weighed on some business investment plans.
Stable credit standards
Credit standards for enterprise loans and household borrowing, including housing loans and consumer credit, remained unchanged from the previous quarter.
All factors affecting credit standards across the loan categories had a neutral impact during the quarter. Banks had previously expected some tightening, but those expectations did not materialise.
Business and household lending
Lending standards for both small and medium-sized enterprises and large companies remained unchanged, continuing at the relatively tight levels recorded since the second quarter of 2024.
Standards for housing loans have remained unchanged since the first quarter of 2024, following tightening in earlier years. Consumer credit and other household lending standards have also remained unchanged since the first quarter of 2024.
Banks expect lending standards to remain stable for businesses and households in the third quarter of 2026.
Business loan terms
Overall terms and conditions for new business loans were unchanged in the second quarter, following tightening in the previous quarter.
Individual terms for new business lending were broadly stable, while factors affecting those terms had a neutral impact.
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