Commission on Cyprus banking sector to submit report first half of June

According to CNA sources, the Commission will present the report at a press conference with a view to get feedback on its recommendations.

The members of the Commission held a series of contacts in Cyprus and abroad, in order to conclude their recommendations. The members of Commission have already written a draft report. Their aim is to make the last changes in this report, and be able to present it in June.

According to CNA sources, the Commission proposes a number of changes in the Cyprus banking sector, to help avert a similar situation in the future.

The Commission recommends ‘many changes’ in the corporate governance of the commercial Banks and the Central Bank and, at the same time, “significant changes” in the operation of the Co-operative Credit Institutions.

The same sources have told CNA that the Commission rejects the position that the international transactions sector bears the responsibility for the current situation of the Cyprus banking sector. The report will also stress that it is pivotal to apply proper management and supervision of the banking sector.

The Independent Commission on the Future of the Cyprus Banking Sector has been set up by the Central Bank of Cyprus to make recommendations on ways to strengthen the sector, improve supervision and promote banking competition in Cyprus for the benefit of consumers and businesses. The Commission is composed of independent experts on banking and financial regulation. It confers with various players and invites submissions from interested parties to draft its report.