The Central Bank of Cyprus began publishing detailed monthly interest rate data from July 2024, amid intensifying competition between banks for both borrowers and depositors in Cyprus.
The initiative aims to provide consumers with comprehensive information about weighted average interest rates across all credit institutions, enabling them to make more informed decisions about their banking choices.
Latest figures show significant variations in deposit rates among banks, with Hellenic Bank (Cyprus) offering the highest one-year term deposit rate at 2.41% in December, while Bank of Cyprus raised its rate to 1.71% from 0.72% in November.
For home loans with floating rates and initial fixing periods up to one year, the Housing Finance Corporation offers the most competitive rate at 3.32%, while Bank of Cyprus charges 5.35%.
In the corporate sector, rates for new loans up to 1 million euros range from 4.66% at Hellenic Bank to 5.34% at Bank of Cyprus, reflecting the competitive landscape in business lending.
The central bank’s monthly publications serve as an indirect pressure mechanism on banks to maintain competitive lending rates while offering better returns to depositors.
The move addresses ongoing public debate about whether genuine competition exists in Cyprus’s banking sector or if customers are trapped in a market with limited choices.
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