Filenews 13 February 2025
Competition between credit institutions in Cyprus is evolving, with the aim of providing new loans, motivated by attractive interest rates and favourable repayment terms, while at the same time the competitive climate favours depositors. Many times the question that prevails in the public debate, either among the political world or social actors, is whether there is competition in banks or whether borrowers and depositors are trapped in a market without many options.
The intention of the Central Bank is to publish on a monthly basis, starting in July 2024, weighted average interest rate data on the basis of those sent to it by credit institutions, and enables consumers to know what is in the market, make comparisons – at least for the last few months – and then make their decisions which bank to choose. Clearly, publication does not solve the problem of depositors and borrowers in relation to interest rates, but it is a step on the part of the Central Bank to consumers to be able to compare what each bank offers.
The publication every month – yesterday became the sixth in a row – is also a tool of indirect pressure on banks to contain lending rates and reward depositors with higher interest rates.
Where did deposits go up?
Depositors can get a taste of the level of interest rates offered by banks. Yesterday's data show that the interest rate on one-year deposits from households (new business) was: Bank of Cyprus 1,71% (November 0,72%%), Hellenic Bank 1,38% (November 1,50%), Alpha Bank 1,35% (November 1,58%), Ancoria Bank 1,56% (November 1,75%), Astrobank 1,54% (November 1,72%), Eurobank Cyprus 2,16% (November 2,16%), Cyprus Development Bank 1,76% (November 1,78%), Societe Generale Cyprus 1,46% (November 1,57%), Housing Finance Corporation 1,67% (November 1,88%), National Bank of Greece Cyprus 2,41% (November 2,49%).
Regarding new deposits with a maturity of up to 1 year from non-financial corporations, the data show: Bank of Cyprus 1,83% (November 1,69%), Hellenic Bank 2,02% (November 2,14%), Eurobank Cyprus 1,69% (November 1,87%), Alpha Bank 1,45% (November 1,93%, National Bank of Greece (Cyprus) 2,38% (November 2,54%).
Where did the loans go up?
In addition to depositors, there are also borrowers who may be thinking about buying a home and want to know the options before them. In the new loans for house purchase to households of variable interest rate and initial determination period up to 1 year (new works - new contracts) the Central Bank data show: Bank of Cyprus 5,35% (November 5,20%), Hellenic Bank 4,27% (November 4,02%), Alpha Bank 3,40% (no data available for November), Ancoria Bank 3,83% (November 4,85%), Housing Finance Corporation 3,32% (November 3,53%). The interest rates on loans for the purchase of a floating rate house (new business – renegotiations) are: Bank of Cyprus 5,47% (November 5,48%), Hellenic Bank 5,08 (November 2,57%), Ancoria Bank 3,25% (November 3,70%), Alpha Bank Cyprus 4,78% (November 4,69%).
For new loans up to €1 million, Central Bank data show: Bank of Cyprus 5.34% (November 5.46%), Hellenic Bank 4.66% (November 4.55%), Alpha Bank 5.03% (November 5.25%), Eurobank Cyprus 5.0% (November 5.32%). The interest rates related to new business – renegotiations are: Bank of Cyprus 5,81% (November 5,83%), Hellenic Bank 4,42% (November 3,42%), Eurobank Cyprus no data for December (November 5,52%).
