Changes in deposit and loan interest rates offered by banks were observed in August, reflecting high levels of competition, according to data released yesterday by the Central Bank of Cyprus (CBC.
As the European Central Bank prepares to decide on a potential third interest rate cut for 2024 on Thursday, 16 October, the CBC has published its monthly breakdown of deposit and loan rates for each bank.
The data revealed variations in one-year fixed deposit rates for households. Rates ranged from Bank of Cyprus at 1.59% (up from 1.35% in July) to National Bank of Greece Cyprus at 2.45% (down slightly from 2.49% in July). Notable changes included Eurobank Cyprus decreasing from 2.46% to 2.08% and Alpha Bank dropping from 2.00% to 1.83%.
For new fixed-term deposits up to one year for non-financial companies, Hellenic Bank offered the highest rate at 2.83%, up from 2.62% in July. Bank of Cyprus increased its rate from 2.30% to 2.41%, while Astrobank saw a significant decrease from 2.41% to 1.41%.
Regarding new home purchase loans for households with variable interest rates and an initial determination period of up to one year, rates varied considerably. The Housing Finance Corporation offered the lowest rate at 3.02%, while Hellenic Bank had the highest at 4.45%. Alpha Bank showed a notable increase from 3.04% to 4.19%.
For new loans up to €1 million to non-financial companies, rates ranged from Hellenic Bank’s 4.91% to Alpha Bank’s 6.21%. Alpha Bank’s rate jumped significantly from 1.88% in July.
For loans above €1 million, Bank of Cyprus offered the highest rate at 6.29%, while Hellenic Bank’s rate decreased from 6.66% to 3.96%.
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