Cyprus

Cyprus (ⁱ/ˈsaɪprəs/; Greek: Κύπρος [ˈcipros]; Turkish: Kıbrıs [ˈkɯbɾɯs]), officially the Republic of Cyprus (Greek: Κυπριακή Δημοκρατία; Turkish: Kıbrıs Cumhuriyeti), is an island country in the Eastern Mediterranean Sea, off the coasts of Syria and Turkey. Cyprus is the third largest and third most populous island in the Mediterranean, and a member state of the European Union. It is located south of Turkey, west of Syria and Lebanon, northwest of Israel, north of Egypt and east of Greece.

The earliest known human activity on the island dates to around the 10th millennium BC. Archaeological remains from this period include the well-preserved Neolithic village of Khirokitia, and Cyprus is home to some of the oldest water wells in the world. Cyprus was settled by Mycenaean Greeks in two waves in the 2nd millennium BC. As a strategic location in the Middle East, it was subsequently occupied by several major powers, including the empires of the Assyrians, Egyptians and Persians, from whom the island was seized in 333 BC by Alexander the Great. Subsequent rule by Ptolemaic Egypt, the Classical and Eastern Roman Empire, Arab caliphates for a short period, the French Lusignan dynasty and the Venetians, was followed by over three centuries of Ottoman rule between 1571 and 1878 (de jure until 1914).

Bank of Cyprus

Bank of Cyprus (Greek: Τράπεζα Κύπρου) is a major Cypriot financial institution. In terms of market capitalisation, of 1.18 Billion Euro on 11 February 2016, it is the country's biggest bank. As at September 2015, the bank held a 26.5% share of the Cypriot deposit market (Euro 12.1 Billion) and a 39.3% share of the Cypriot loan market (Euro 20.9 Billion), making it the largest bank in Cyprus. The Bank of Cyprus Group employs 4,610 staff worldwide and 4,341 in Cyprus.

Current Operations

The Group currently operates through a total of 135 branches/business offices, of which 129 operate in Cyprus, four in the United Kingdom, (Euro 1.1 Billion in loans) one in the Channel Islands, one in Romania (Euro 440 million loans). The group has representative offices in Greece, Russia,Ukraine and China.

The shares of the bank are listed on the Cyprus Stock Exchange (CSE). The Bank is the largest listed company on the CSE in terms of market capitalization. Since October 8, 2007 the Bank of Cyprus has been part of the Cyprus 10 Index, which comprises the 10 largest companies in Cyprus. The Bank of Cyprus is also listed on the Athens Exchange and had been part of the FTSE/Athex Large Cap index from 9 October 2006 until March 2013. The four largest shareholders as at December 2014 are Cyprus Popular Bank Public Co Ltd, with a holding of 9.624%, Renova Group, with a holding of 8%, TD Asset Management, with a holding of 5.232% and the European Bank for Reconstruction and Development, with a holding of 5.021%. All except the Cyprus Popular Bank have a seat on the board of directors.

Bank

A bank is a financial institution that creates credit by lending money to a borrower, thereby creating a corresponding deposit on the bank's balance sheet. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial system and influence on national economies, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.

Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and lending that had their roots in the ancient world. In the history of banking, a number of banking dynasties — notably, the Medicis, the Fuggers, the Welsers, the Berenbergs and the Rothschilds — have played a central role over many centuries. The oldest existing retail bank is Monte dei Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank.

Cyprus Popular Bank

Cyprus Popular Bank (formerly known as Marfin Popular Bank) was the second largest banking group in Cyprus behind the Bank of Cyprus until it was shuttered in March 2013 and was split into two parts the 'good' Cypriot part was merged into the Bank of Cyprus (including insured deposits under 100,000 Euro) and the 'bad' part or legacy entity holds all the overseas operations as well as uninsured deposits above 100,000 Euro, old shares and bonds. The uninsured depositors were subject to a bail-in and became the new shareholders of the legacy entity. As at December 2014, the legacy entity is the largest shareholder of Bank of Cyprus with 9.6% but does not hold a board seat. All the overseas operations, of the now defunct Cyprus Popular Bank, are also held by the legacy entity, until they are sold by the Special Administrator, at first Ms Andri Antoniadou, who ran the legacy entity for two years, from March 2013 until 3 March 2015. She tendered her resignation due to disagreements, with the Governor of the Central Bank of Cyprus and the Central Bank Board members, who amended the lawyers of the legacy entity, without consulting her. Veteran banker Chris Pavlou who is an expert in Treasury and risk management took over as Special Administrator of the legacy entity in April 2015. The legacy entity is pursuing legal action against former major shareholder Marfin Investment Group.

Central bank

A central bank, reserve bank, or monetary authority is an institution that manages a state's currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base in the state, and usually also prints the national currency, which usually serves as the state's legal tender.

The primary function of a central bank is to control the nation's money supply (monetary policy), through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis. Central banks usually also have supervisory powers, intended to prevent bank runs and to reduce the risk that commercial banks and other financial institutions engage in reckless or fraudulent behavior. Central banks in most developed nations are institutionally designed to be independent from political interference. Still, limited control by the executive and legislative bodies usually exists.