Cypriots use cards 1.3 times more frequently than their European peers, while the contactless card payments capture more than half of all card payments consistently since 2022, the Governor of the Central Bank of Cyprus Christodoulos Patsalides said, in his speech at the 12th Banking Forum and Fintech Expo, in Nicosia.
As he underlined, CBC’s key priorities include advancements in the digital economy, the evolving role of digital payments, the potential introduction of a digital euro, and the regulatory frameworks that ensure responsible governance and societal considerations in the financial systems. “Through these efforts, we aim to strengthen Cyprus’ position as a dynamic player within the European financial landscape”, he noted.
The Governor said that Cyprus economy has demonstrated resilience and adaptability despite the consecutive significant geopolitical challenges. “In recent years, Cyprus has achieved robust growth rate well above the EU average and maintained a strong fiscal position, consistently posting surpluses that have bolstered public finances”, he mentioned, noting that as a result, international rating agencies have upgraded their ratings well within the investment grade, highlighting the sound economic management, fiscal discipline, and reforms in the banking sector.
The Cypriot banking sector, the Governor continued, has built up remarkable resilience and robustness despite a series of unprecedented and successive crises in recent years. The sector’s solvency, as indicated by the Common Equity Tier 1 (CET1) ratio, rose to 23.5% in the third quarter of 2024, achieving its highest level on record and significantly surpassing the European average of 16%. Additionally, the Liquidity Coverage Ratio (LCR) reached 336% in September 2024. This level exceeds the regulatory minimum of 100% by more than threefold and stands well above the European average of 161.4%. The non-performing loan (NPL) ratio fell to 6.5% in the third quarter of 2024, marking its lowest level since 2014.
“However, there is no room for complacency as macroeconomic uncertainty, geopolitical risks, and emerging threats like cyber and climate risks grow. Banks must adapt quickly to identify and address these evolving challenges effectively. Moreover, technological advancements bring about a new landscape in which banks are called upon to compete. The pursuit of an appropriate business model is key”, he highlighted.
( Source : CNA)
