Banking and finance
The legal tender is the Euro. The banking system consists of the Central Bank of Cyprus, a number of local commercial banks, international banking units, administered banking units, specialised financial institutions and leasing companies. The Central Bank of Cyprus is the supervisory authority of the banking system. In performing its role, the Central bank is guided by the recommendations of the Basle Committee on Banking Supervision and follows up new developments on the international scene. Further, the Central Bank participates in the European System of Central banks and implements the EU Directives on banking regulation and other related issues.
Commercial banking arrangements and practices follow the British model. Strong correspondent networks are maintained around the world by local and international banks, facilitating easy access to the world banking network and enabling the carrying out of virtually all kind of financial transactions.
There is a well developed and adequately supervised insurance industry covering all types of risk usually undertaken in this industry. Many local and international insurance organisations operate mainly through agents and intermediaries.
The Cyprus Stock Exchange commenced its operations in 1996. It is a regulated Exchange where all transactions concerning corporate and public securities (stocks, bonds and warrants) are carried out. The main participants in the market consist of the Members of the Stock Exchange (stock brokerage firms), the listed issuers and investors.