The interest rates of Cypriot banks for both deposits and loans are showing increased alignment with eurozone averages, according to data published by the Central Bank of Cyprus for December.
The initiative aims to enhance market transparency and consumer awareness by providing detailed breakdowns of rates offered by individual financial institutions, enabling households and businesses to make more informed financial decisions.
“The monthly publication of detailed interest rate data contributes to easier public awareness, providing households and businesses with direct access to more comprehensive information,” the Central Bank stated, noting that while definitive conclusions remain premature, preliminary results indicate a growing convergence between Cypriot and eurozone rates.
For one-year term deposits, household rates in December ranged from 1.35% to 2.41% across Cyprus’s banking sector. Notable figures include Bank of Cyprus offering 1.71% (up substantially from November’s 0.72%), Hellenic Bank at 1.38% (down slightly from 1.50%), and National Bank of Greece Cyprus providing the highest rate at 2.41%.
Business deposit rates showed similar variability, with term deposits up to one year ranging between 1.45% and 2.38%. Bank of Cyprus increased its rate to 1.83% from November’s 1.69%, while Astrobank significantly reduced its offering to 1.53% from the previous month’s 2.92%.
The mortgage lending landscape revealed substantial differences between institutions, with new home loans on floating rates ranging from 3.32% at the Housing Finance Corporation to 5.35% at Bank of Cyprus. Hellenic Bank positioned itself in the middle range at 4.27%, representing an increase from November’s 4.02%.
For business financing, loans up to €1 million saw generally improved terms, with Bank of Cyprus reducing its rate to 4.29% from November’s 5.45%. Similar trends appeared in larger corporate loans exceeding €1 million, where Eurobank Cyprus offered 4.12%, down from 5.19% the previous month.
