Banks in Cyprus
After the financial crisis that faced Cypriot banks in 2013 and the tough austerity measures that were implemented by the EU, Cyprus has shown remarkable resilience and has reclaimed its status as a thriving economy. The economy was restructured and diversified in order to be able to exit the economic adjustment program earlier than scheduled. Economic growth has exceeded all expectations and Cyprus has successfully recovered from the €10 billion bailout deal and the bail in of bank deposits that was imposed. The International lenders issued some harsh terms which Cyprus followed under tough supervision managing to introduce some serious reform programs to correct the weaknesses in its financial system. Recapitalization of the banking sector has passes rigorous ECB stress tests and solvency and liquidity in the banking system has improved dramatically by more than €3 billion in 2017 which has followed with the full repayment of the Emergency Liquidity Assistance. Following the tough austerity measures, Cyprus has continued on a solid growth path and is now one of the fastest growing Eurozone economies with strong fiscal performance and new large scale projects that are scheduled to improve the economy even further. As of July 2018 Cyprus, was ranked one notch below investment grade by Standard & Poor’s and Fitch Ratings.
The economy of Cyprus is built on the service sector which includes tourism, financial services and real estate. These services account for over 80% of the total GDP and employment. With an impressive growth rate of 3.9% in 2017, which exceeded the EU average, Cyprus is set to show even further increases in 2018 and 2019. These increases are predicted due to the strong private demand which is spurred on by expanding employment and record tourism arrivals. More than half of Cyprus’ trade is done with the EU and the country has achieved record numbers in recent years both in exports and services.
One of the largest banks in Cyprus, Hellenic Bank, has recently taken control of the state owned Cyprus Cooperative Bank. This acquisition is set to accelerate the banks holding in Cyprus with a diversified customer base. The expansion will establish Hellenic Bank as the leading bank in Cyprus. Before the end of 2018, it is expected that over 100 branches of the Cyprus Cooperative Bank will be closed and Hellenic bank aims to consolidate these branches into their existing infrastructure. With this acquisition Hellenic Bank has a record breaking 550,000 customers island wide. Bank of Cyprus has the lion’s share of all deposits with 30% which is followed by Hellenic Bank with 22% which it now owns after acquiring the CCB’s share.
There are 28 foreign banks operating in Cyprus.
Subsidiaries of Foreign Credit Institutions from E.U. Member States
National Bank of Greece (Cyprus) Ltd
Subsidiaries of Foreign Credit Institutions from non E.U. Member States
Societe Generale Bank-Cyprus Limited
USB Bank Plc
Branches of Foreign Credit Institutions
Central Cooperative Bank PLC
First Investment Bank Ltd
National Bank of Greece S.A.
Branches of Foreign Credit Institutions from non E.U. Member States
Arab Jordan Investment Bank SA
Bank of Beirut SAL
Banque BEMO SAL
BLOM Bank SAL
Byblos Bank SAL
Credit Libanais SAL
IBL Bank sal
Joint-stock company AVTOVAZBANK
Jordan Ahli Bank plc
Jordan Kuwait Bank PLC
Lebanon and Gulf Bank SAL
Public Joint-Stock Company Commercial Bank "Privatbank"
Atlasmont Banka A.D
JSC Bank of Georgia
Banks incorporated in Cyprus
Alpha Bank Cyprus (Subsidiary of Alpha Bank)
Bank of Cyprus
Cyprus Cooperative Bank
Cyprus Development Bank
Housing Finance Corporation
National Bank of Greece (Cyprus)
Societe Generale Bank (Cyprus) (Subsidiary of Société Générale)
Branches of foreign banks in Cyprus
Arab Jordan Investment Bank
Bank of Beirut
Central Cooperative Bank
EFG Bank (Luxembourg)
First Investment Bank
Jordan Ahli Bank
Jordan Kuwait Bank
Lebanon & Gulf Bank
National Bank of Greece