The Central Bank of Northern Cyprus has published its bulletin for the second quarter of 2026, providing data on sectoral developments. According to the data, the banking sector’s equity has reached 71 billion 940.2 million TL, reflecting a 60.92% increase compared to the same period last year. This growth indicates a significant improvement in the sector’s financial health.
The bulletin also noted that the total assets of the banking sector increased by 8.83% to 569 billion 160.4 million TL by the end of June 2026 compared to March. This suggests that banks’ lending capacity has also expanded.
As of June 2026, total gross loans were recorded at 243 billion 948.6 million TL, with an annual increase of 44.51%. Among the components of the banking sector’s total assets, gross loans accounted for the largest share at 42.86%, followed by cash and cash equivalents at 32.05%.
Types of Loans and Deposit Distribution
In terms of loan types, business loans ranked first with 167 billion 968.6 million TL, followed by consumer loans at 44 billion 312.2 million TL. The annual growth rate for business loans was recorded at 39.91%, while consumer loans experienced a growth rate of 55.21%.
Examining the deposit data, as of June 2026, savings deposits amounted to 275 billion 609 million TL, making it the highest figure. Commercial deposits followed in second place with 92 billion 980.4 million TL. In the composition of deposits, Turkish lira amounted to 134 billion 789.3 million TL, while foreign currency deposits totaled 289 billion 893.2 million TL. The growth rate for Turkish lira deposits was recorded at 12.37%, while foreign currency deposits saw an increase of 5.46%.
Inflation and Budget Situation
Inflation data for the second quarter of 2026 also drew attention. Monthly inflation rates were 4.62% in April, 2.06% in May, and 2.29% in June. Yearly inflation was recorded at 38.15% in April, 37.28% in May, and 38.46% in June. Education, health, and various goods and services were among the groups experiencing the highest increases.
Regarding the budget situation, budget revenues for the first half of 2026 reached 66 billion 200 million TL, reflecting a 36% increase compared to the same period last year. Budget expenditures increased by 34.9% to 71 billion 371.4 million TL. For this period, the budget deficit was determined to be 5 billion 171.4 million TL, while the deficit for the second quarter rose to 6 billion 589.5 million TL.
Source: www.diyaloggazetesi.com
