Overview of the banking system in Cyprus
The banking system in Cyprus is well organized and follows the British pattern. Cypriot banks have many branches internationally as well as international banks that are based in Cyprus.
In total there are 21 bank institutions from 10 different countries that have a licenced branch in Cyprus by the Central Bank.
- Cyprus (Bank of Cyprus, Eurobank, USB Bank, Cyprus Development Bank)
- Russia (RCB, PS Bank)
- Ukraine (Privat Bank)
- Lebanon (9 banks)
- Latvia (As Expobank)
- Bulgaria (Central Cooperative Bank PLC)
- France (Banque SBA, Societe Generale Bank)
- Denmark (Saxo Bank A/S)
- Sweden (Ancoria Bank)
- Greece (Hellenic Bank, Piraeus Bank, Alpha Bank : Inc. in Cy)and (National Bank Greek Branch)
- Luxembourg (EFG Bank)
- Jordan (3 banks)
In 2013 there was a financial crisis in Cyprus and some banks were found exposed by the connection with the Greek government debt. This resulted to a bailout, a decision that was made by the Eurogroup, the EC, the European Central Bank and the IMF. The Cyprus government had to accept a term set by the Europeans which was to close down one of the major Cypriot banks on the island the Laiki Bank.
Since then, the banking system in Cyprus has improved substantially and there is no more threat of a bailout or a financial crisis. On the contrary even more banking institutions are coming down on the island and reinforcing the banking system of the Country.
In general the banks are not as flexible as before but however they will approve a small amount of loans or bigger ones depending on the security of the guarantees that they will be offered.
To learn more about the general economy of Cyprus you can click here or if you would like to know more regarding the banks and the property market please contact us.