Cyprus needs a new national banking strategy and stronger foundations to ensure further financial stability, an independent commission told the island’s president, just seven months after the sector reached the point of meltdown and sought an international bailout.
President Nicos Anastasiades said he is committed to applying the suggestions of the four members of the Independent Commission of the Future of the Cyprus Banking Sector, which he described as “very important”.
Spokesman Christos Stylianides said the commission’s report will be embraced by the government “as it ensures ways to restore confidence in the Cyprus banking sector.”
He added that the report also calls for greater corporate governance and better banking supervision.
Stylianides said that the report’s findings conclude that the stability of the banking sector is the key factor towards the economy’s recovery, as well as to reinstate Cyprus as a leading financial services centre and a hub for economic activities.
“We presented our main recommendations (to the President) and he told us he will fully support them, adding that he would undertake certain plans in order to implement these suggestions,” said Commission chairman David Lascelles.
He added that the report will be released on Thursday in order to present all their recommendations to help revive the banking sector and for these to be taken into consideration by all parties.
Lascelles, flanked by Commission members David Greene, George Charalambous and Pierre de Weck, said that the recommendations include policy decisions at the highest government level, with detailed suggestions on how to improve banking supervision, consumer protection and restore foreign and international banking activities in Cyprus.
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