English | Русский | 中国
 
 

CONFIDENCE IN CYPRUS’ BANKING SECTOR BEING RESTORED

bottom

06-07-2014

CONFIDENCE IN CYPRUS’ BANKING SECTOR BEING RESTORED

The Cyprus banking system has been handed a clean bill of health according to independent evaluations. The Cypriot banking sector, which is now fully recapitalised, is currently in the process of implementing changes mandated by the stricter regulatory framework, both at the domestic and EU level. A new Single Supervisory Mechanism is being implemented, while major steps are being taken towards a Banking Union, which will help restore confidence in the European banking system. A tangible sign of improvement in the sector is the lifting of restrictions, which is progressing according to the set roadmap. Competitive conditions appear to function well in the domestic banking market since banks can be seen to scale up their promotion of products and services in line with the lifting of restrictions. The recent credit rating upgrades as well as the successful sovereign bond issue that marks the re-entry of Cyprus in international markets are welcome signs that the economy is on the right track. Other encouraging signs are the recapitalisation of two banks by foreign investors, as well as the first quarter results of banks, which point towards a stabilisation of non-performing loans and a tentative return to positive returns.

In Cyprus, three banks as well as the cooperative credit sector will be under the direct supervision of the European Central Bank (ECB), while a number of banks that are subsidiaries of Greek financial institutions will be under the indirect supervision of the ECB. These structural and regulatory changes offer reassurance to depositors and investors. At the same time, the Cypriot economy and banking sector continue to maintain their traditional advantages. The geographic location of the island together with the multilingual and highly qualified work force offers an attractive proposition to international clients of banks. In addition, Cyprus banks maintain correspondent networks around the world and offer extensive working hours through their IBUs as well as a broad use of internet banking services.
 

Head Office:
33 Nicodemou Mylona
Pafos, CY8101
Cyprus
T: +357 26 848 800
F: +357 26 934 910
E: info@pafilia.com
Freephone: 8000 89 89
Map
Limassol Office:
307-309
28th October Avenue
Limassol, CY3105
Cyprus
T: +357 25 590 880
E: info@pafilia.com

Map
Moscow Office:
12 Kransopresnenskaia
Naberezhnaia
Poz'ezd 6, Office 1032
Moscow, Russia
T: +7 (495) 258 1970 /71
F: +7 (495) 258 1970 /71
E: russian@pafilia.com
Map
Beijing Office:
Room 3305, No.6 Building
Jianwai SOHO
No.39 East 3rd Ring
Middle Road, Chaoyang
District, Beijing, China
T: +86 186 1115 0291
E: info@pafilia.cn.com
Map
South East Asia Office:
Level 46, Bitexco Financial Tower
2 Hai Trieu Street
District 1
Ho Chi Minh, Vietnam
T: +84 28 6287 5911
M: +84 122 768 6019
E: b.winter@pafilia.com
Map
Athens Office:
Corner 58 Kafkasou &
52 Skopelou Streets
Kypseli
Athens
Greece
T: +30 210 2717100
E: c.diagkos@pafilia.com
Map