The Central Bank of Cyprus recorded stricter criteria for granting loans and a reduction in demand in the second quarter of the year, reflecting geopolitical developments, specifically the war in Ukraine.
The results of research into banking loans during the second quarter align with the expectations of banks over the previous quarter.
The report showed that banking institutions are expecting stricter criteria for granting loans for the next quarter as well, as banks aim to maintain low-levels of new non-performing loans. It also highlighted the increased uncertainty about the universal economic environment.
“The banks say that the increased perception of the dangers regarding the general financial situation, the prospects of buying houses and the solvency of borrowers are the main factors for the adoption of stricter criteria,” the Central Bank noted.