Credit Institutions in Cyprus
The banking sector in Cyprus, comprising local banks, subsidiaries and branches of foreign banks, is regulated, supervised and monitored by the Central Bank of Cyprus (CBC). By law, the Central Bank’s main objectives are to preserve stability in the financial sector, maintain price stability, foster economic growth, minimize systemic risk and protect depositors. In its supervisory role, the Central Bank has always been guided by the recommendations of the Basel Committee on Banking Supervision and it implements the EU’s Directives on banking regulation.
• The possession and management of reserves in euros in cooperation with the European Central Bank
Recent credit rating upgrades and positive bank results have marked an end to a period of prolonged uncertainty in Cyprus’ banking sector. Today, the situation is stable and trust in the country’s banks has been further boosted by successful sovereign bond issues and the lifting of all capital controls.
In October 2014, Bank of Cyprus, Hellenic Bank, the Cooperative Central Bank and RCB Bank passed the ECB’s stress tests. The first two had previously been recapitalised by substantial foreign investment.