According to World Economic Forum's Global Competitiveness Report 2019, financial market development in Cyprus is scored 58.2 out of maximum 100.0 and ranked 76th out of 144 analysed economies.
Chart 1. Financial Market Development in Cyprus. Source: WEF.
Soundness of banks is scored 3.3 bringing Cyprus into the 129th place.
Chart 2. Soundness of Banks in Cyprus. Source: WEF.
Banks in Cyprus are mainly focused on the following areas:
Currently there are 30 credit institutions operating in Cyprus.
In 2019 consolidated banking assets in Cyprus were 57,954.95 mln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in Cyprus.
Recent structural changes (2013 - 2018) of the banking sector of Cyprus are summarised in Table 1.
|Number of Opened Banks||0||1||1||0||0||0|
|Number of Closed Banks||26||45||2||2||20||12|
Table 1. Recent structural changes in the banking sector of Cyprus.
The list of the most recently opened banks in Cyprus is provided in Table 2.
All the credit institutions operating in Cyprus can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||18|
There are 18 branches of foreign banks from 7 different countries in Cyprus. Table 4 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|
Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Cyprus are summarised in Table 5.
Table 5. Deposit guarantee scheme in Cyprus.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Euro) deposit ceiling for Cyprus is set to A2 (upper medium grade), foreign currency deposit ceiling is A2 (upper medium grade).
Chart 4. Deposit Rates in Cyprus. Source: ECB.