Cyprus is a small island country located in the Eastern Mediterranean. The country has a well-established banking system that plays an important role in the economy. If you are planning to relocate to Cyprus or invest in this small country, you will find it useful to know about the main banks of the island. So, in this article, we will explore the banking system on the island and tell you about the top banks in Cyprus, including its history, regulation, and current state.

History of the Banking System in Cyprus

The banking system in Cyprus dates back to the 19th century, when the first banks were established on the island. However, it was not until the 1960s and 1970s that the banking industry began to take shape, following the country's independence from Britain in 1960.

During the 1970s and 1980s, the banking sector in Cyprus experienced rapid growth, driven by the country's economic development and a surge in foreign investment. By the 1990s, the country's banking system had become a significant contributor to the economy, with assets totaling more than 10 times the country's gross domestic product (GDP).

In 2013, however, the banking system in Cyprus faced a major crisis, which led to the closure of one of the country's largest banks and a significant loss of deposits. The crisis was largely caused by the exposure of Cypriot banks to Greek debt, which had been severely impacted by the financial crisis in Greece.

Regulation of the Banking System in Cyprus

The banking system in Cyprus is regulated by the Central Bank of Cyprus, which is responsible for ensuring the stability of the banking system and promoting financial stability in the country. The Central Bank of Cyprus is also responsible for supervising the country's banks and ensuring that they comply with regulations and standards.

In addition to the Central Bank of Cyprus, the banking system in Cyprus is also subject to regulation by the European Central Bank (ECB), as Cyprus is a member of the European Union. The ECB is responsible for overseeing the stability of the eurozone banking system and ensuring that member states comply with EU regulations.

Current State of the Banking System in Cyprus

Following the crisis in 2013, the banking system in Cyprus has undergone significant reforms aimed at improving its stability and resilience. These reforms have included a strengthening of regulations and supervision, as well as an increase in capital requirements for banks.

Despite the challenges faced by the banking system in recent years, it remains an important part of the Cypriot economy.

The banking system in Cyprus also plays a significant role in attracting foreign investment to the country. The country's favorable tax environment and business-friendly regulations have made it an attractive location for foreign investors, and many multinational corporations will continue to establish operations in Cyprus in 2023 to take advantage of these benefits.

Top banks of Cyprus

There are quite a few banks in Cyprus. But we will focus our attention on the most important and most popular for expats.

The popularity of these banks is the fact that many people are taking them on mortgages to purchase property in Cyprus.

There are several popular banks, both local and international. Some of the most popular banks in Cyprus include:

- Bank of Cyprus

- Hellenic Bank

- Alpha Bank Cyprus

- Eurobank Cyprus

- Cyprus Development Bank

Bank of Cyprus

The Bank of Cyprus is the largest, oldest, and best bank in Cyprus, with a history dating back to 1899. It is a publicly-traded company that is listed on the Cyprus Stock Exchange and the Athens Stock Exchange, as well as the London Stock Exchange. The bank has a presence in Cyprus, Greece, and the United Kingdom, and offers a wide range of banking services to retail, commercial, and corporate customers.

Retail Banking

In 2023, Bank of Cyprus will offer a range of retail banking services, including deposit accounts, loans, credit cards, and online banking. The bank's deposit accounts include savings accounts, time deposits, and fixed-term deposits, and customers can choose from a range of currencies, including Euro, US Dollar, and British Pound. The bank also offers a variety of loan products, including personal loans, home loans, and car loans, as well as credit cards with various benefits and rewards programs.

Commercial and Corporate Banking

Bank of Cyprus also provides a range of banking services to commercial and corporate customers. These services include business loans, trade finance, project finance, and cash management, corporate credit cards and merchant acquiring services. The bank also offers a range of digital banking solutions, including online banking, mobile banking, and e-commerce solutions.

Wealth Management and Private Banking

Bank of Cyprus also offers wealth management and private banking services to high net worth individuals and families. These services include investment management, wealth planning, and asset protection, as well as trust and fiduciary services. The bank's private banking team provides personalized services and solutions to meet the unique needs of its clients.

International Presence

In addition to its operations in Cyprus, Bank of Cyprus has a significant presence in Greece, where it operates as a subsidiary, and in the United Kingdom, where it operates as a branch. The bank also has a representative office in Russia, where it serves as a gateway for businesses and individuals looking to invest in Cyprus.

Hellenic Bank

Hellenic Bank is the second largest and best bank in Cyprus, with a history dating back to 1976.

- Hellenic Bank provides a wide range of financial products and services to its customers. Here is a list of some services provided by Hellenic Bank:

- Retail banking services, including deposit accounts, personal loans, mortgages, and credit cards.

- Online banking services, including account management, bill payments, and fund transfers.

- Corporate banking services, including loans, overdraft facilities, working capital facilities, and trade finance solutions.

- International banking services, including correspondent banking, trade finance, and foreign currency accounts.

- Investment banking services, including portfolio management, investment advisory, and wealth planning.

- Asset management services, including asset protection and financial planning.

- Treasury services, including foreign exchange and money market operations.

- Private banking services, including customized solutions for high-net-worth individuals and families.

- Mobile banking services, allow customers to access their accounts and conduct transactions on the go.

- E-commerce solutions, allow businesses to accept online payments and manage their finances.

- Insurance products, including life, property, and health insurance.

Hellenic Bank is committed to providing its customers with innovative, reliable, and personalized financial solutions, and is continually expanding its range of services to meet the diverse needs of its customers.

Alpha Bank Cyprus

Alpha Bank Cyprus is a subsidiary of Alpha Bank, a leading Greek banking institution with a long history in the region. Alpha Bank Cyprus offers a wide range of financial products and services to both retail and corporate customers in Cyprus.

Here are some of the key services provided by Alpha Bank Cyprus:

Retail Banking

Alpha Bank Cyprus offers a range of retail banking services, including deposit accounts, personal loans, mortgages, credit cards, and online banking. The bank's deposit accounts include savings accounts, current accounts, and fixed-term deposits, with competitive interest rates and flexible terms. Personal loan products include unsecured loans, car loans, and home improvement loans, with repayment terms that can be customized to suit individual needs. The bank's credit card products offer various benefits, such as cashback and loyalty programs, and can be used worldwide. Alpha Bank Cyprus' online banking platform allows customers to manage their accounts, transfer funds, and pay bills online.

Corporate Banking

Alpha Bank Cyprus provides a range of financial products and services to businesses in Cyprus, including loans, overdraft facilities, trade finance solutions, and cash management services. The bank's experienced team of corporate bankers provides customized solutions to meet the unique needs of each business customer. Alpha Bank Cyprus also provides international banking services to corporate customers, including correspondent banking and foreign exchange services.

Investment Banking

Alpha Bank Cyprus' investment banking division provides a range of services to institutional and corporate clients, including capital market services, advisory services, and asset management services. The bank's experienced team of investment bankers provides customized solutions to meet the unique needs of each client.

Private Banking

Alpha Bank Cyprus provides a range of private banking services to high net worth individuals and families, including customized investment solutions, wealth management services, and financial planning services. The bank's experienced team of private bankers provides personalized services and solutions to help clients meet their investment and financial objectives.

Eurobank Cyprus

Eurobank Cyprus is a subsidiary of Eurobank, one of the largest banking groups in Greece. The bank was established in 2007 and has since become a leading financial institution in Cyprus, offering a wide range of money operations.

Eurobank Cyprus operates through a network of 11 branches across the country, providing a range of products and services to individuals, businesses, and corporate clients. These include current and savings accounts, personal and business loans, credit cards, investment and insurance products, and foreign exchange services.

The bank places a strong emphasis on providing personalized customer service, with a team of experienced professionals trained to offer tailored solutions to meet the individual needs of each customer. Eurobank Cyprus also offers online banking and mobile banking services, allowing customers to easily manage their accounts and conduct transactions from the convenience of their smartphones or computers.

In addition to its commitment to customer service, Eurobank Cyprus is also focused on sustainability and social responsibility. The bank has implemented a number of initiatives aimed at reducing its environmental impact and promoting social welfare, including the use of renewable energy, the adoption of eco-friendly practices, and support for community projects and charitable organizations.

Cyprus Development Bank

The Cyprus Development Bank (CDB) is a leading financial institution in Cyprus, offering a wide range of financial products and services to its clients. The bank was established in 1963 as a specialized financial institution with a focus on the development of the Cypriot economy. Over the years, the bank has evolved to become a fully-fledged commercial bank, offering a wide range of financial products and services to its clients.

CDB has a strong focus on supporting small and medium-sized enterprises (SMEs), as well as large corporations, in Cyprus and beyond. The bank has a deep understanding of the local market and a long-standing relationship with many of its clients. It also has a global outlook, with a presence in several countries through its international banking operations.

CDB has a highly experienced team of professionals who are dedicated to providing high-quality financial services to their clients. The bank's corporate culture is based on professionalism, integrity, and customer service. Its mission is to provide innovative financial solutions that meet the needs of its clients, while ensuring that its operations are sustainable and socially responsible.

In addition to its financial products and services, CDB is also committed to corporate social responsibility (CSR) initiatives. The bank supports various educational, cultural, and environmental initiatives in Cyprus, reflecting its commitment to contributing to the development of the local community.

The Cyprus Development Bank (CDB) offers a range of financial services to its clients, including:

- Corporate Banking: CDB offers corporate banking services to small and medium-sized enterprises (SMEs) and large corporations, including credit facilities, trade finance, and treasury services.

- Project Finance: CDB provides project finance for various sectors, such as renewable energy, infrastructure, and real estate. The bank supports the development of new projects by providing financing for the construction and operation of the project.

- Investment Banking: CDB offers investment banking services to its clients, including capital markets services, such as underwriting and placement of securities, as well as advisory services, such as mergers and acquisitions, corporate finance, and restructuring.

- International Banking: CDB offers a range of international banking services to its clients, including foreign currency accounts, trade finance, and correspondent banking.

- Private Banking: CDB offers private banking services to high net worth individuals, providing personalized investment management and wealth management services.

- Asset Management: CDB provides asset management services, managing investment portfolios for its clients and offering investment advice and research.

Conclusion

The banking system in Cyprus has a long and storied history, dating back to the 19th century. With strong regulation and oversight, the banking system in Cyprus is well-positioned to continue supporting the country's economic development in the years to come. The banking system also has a reputation for being stable and reliable, which has made it an attractive destination for foreign investment in real estate. The country's geographical location, climate, and culture, as well as it's EU membership, also make it an appealing choice for property buyers.

The Cypriot banking system may provide a solid foundation for real estate investments.