Cypriot banks offer low interest rates on household deposits, slightly above those in Bulgaria, but excel in capital returns with a 26.3% return on capital for 2023, ranking second in Europe. Despite the challenges posed by slow economic growth and rising interest rates, the banks’ adaptability and strategic decisions will shape their future trajectory.
1 housing loan interest rates
As of October 2023, the interest rate for housing loans in Cyprus has surged to 4.91 percent, a significant increase from the previous month’s rate of 4.42 percent. This rise in rates reflects broader economic shifts and has implications for the affordability of homeownership and the financial wellbeing of households.