Banks in Cyprus

The banking system in Cyprus consists of the Central Bank of Cyprus, local banks and international financial institutions. Also, it includes cooperative credit institutions, supervised by exercise Administration Supervision and Development of Cooperative Societies. 

The Central Bank of Cyprus issues banking licenses and provides banking supervision, its powers are based on the Law on the Central Bank of Cyprus. When exercising supervision, the Central Bank is guided by the recommendations of the Basel Committee on Banking Supervision and the regulatory system of the European Union. In July 2003, the Banking Act (as amended thereto) was implemented by the House of Representatives in order to achieve full compliance and harmonization of regulatory and supervisory systems in implementation of banking activities.

Total in Cyprus are 14 local banks, including 11 commercial banks and 3 specialized financial institutions. All banks registered in Cyprus, except the “Arab Bank Plc” and “National Bank of Greece”, which act as branches of foreign banks. Specialized financial institutions are “Cyprus Development Bank, Ltd.”, “Housing Finance Corporation” and “Mortgage Bank of Cyprus, Ltd.”.

The “Cyprus Development Bank, Ltd.” specializes in providing medium-and long-term loans for development purposes, involved in investment banking and has been advising businesses. The “Housing Finance Corporation” issues long-term loans for housing, mainly to low-and middle-income families, and the “Mortgage Bank of Cyprus, Ltd.” specializes in providing medium and long term loans for the tourism development and manufacturing industries.

In recent years, banks have expanded their activities beyond the provision of traditional banking services, which now include insurance, leasing,  credit sales, factoring, mutual funds, investment and consulting, as well as storage and asset management services. Also were developed new products and services provided via electronic channels such as the Internet, call centers, etc. In addition to local banks, the Central Bank of Cyprus has also issued permission to conduct banking activities to 29 international banking institutions that are currently operating in Cyprus.