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Banks

Cyprus’ financial system is relatively large and sophisticated. The sector is comprised of companies involved in commercial banking, accounting and tax, cooperative credit, pension funds, capital markets and insurance. In 2009, the country’s banking sector assets represented 69% of GDP, a larger percentage than that of the UK or Switzerland. There are 14 banks in operation consisting of three specialized financial institutions – the Housing Finance Corporation, the Cyprus Development Bank Ltd and the Mortgage Bank of Cyprus Ltd – and 11 commercial banks. Of these five are domestic, four are subsidiaries of foreign banks and two are branches of foreign banks (2011). There is also a significant role played by domestically-owned credit institutions, in the form of both cooperatives and commercial banks, comprising 63% of total banking assets in 2009. Despite the fact that the biggest domestically-owned banks in Cyprus are relatively small in absolute terms, their significant size as a proportion of GDP places them above those in most other European countries. This phenomenon translates into high concentration levels, with the three biggest banks – Bank of Cyprus, Marfin Popular Bank and Hellenic Bank – controlling 56% of domestic deposits and 48% of domestic loans (2011). These institutions have been central to expansion abroad, particularly into Greece.

Banking and Financial Services organisations in Cyprus
Central Bank of Cyprus
Cyprus Research Centre (KYEM)
Russian Commercial Bank