US regional banks are expected to set aside more money to cover potential commercial real estate (CRE) losses and sell more property loans as the sector remains under pressure a year after the collapse of Silicon Valley Bank and Signature Bank.
Fact: Eastern Mediterranean University (EMU) in Famagusta currently has a tax debt of 3.2 billion TL (€92.8m).
Christodoulos Patsalides was appointed as the new Central Bank Governor of Cyprus, replacing Constandinos Herodotou. Patsalides, a former deputy CEO of the Bank of Cyprus, was sworn in just in time to attend the ECB monetary policy meeting in Frankfurt.
Fact: Christodoulos Patsalides was sworn in as Central Bank governor by President Nikos Christodoulides.
Fact: Bundled or packaged life insurance combines various life insurance coverages into a single policy with a single premium payment, offering cost savings, flexibility, simplified underwriting, and convenience.
APOEL Nicosia has entered into a €35 million deal with US-based Cypriot investor Constantine ‘Dinos’ Iordanou to build their own stadium in Kokkinotrimithia.
Fact: CBC governor Constantinos Herodotou addressed the “Digital Financial Literacy: the Way Forward” conference, highlighting the importance of financial literacy in managing finances effectively and contributing to financial stability and sustainable growth.
Fact: Real estate investment offers potential for generating passive income, capital appreciation over time, and diversification of an investment portfolio.
Cyprus plans to implement the Markets in Crypto-Assets (MiCA) regulation by the end of this year or early 2025, aiming to protect investors and promote transformation in the crypto asset sector in the European Union. The MiCA framework, created by the European Commission, focuses on maintaining financial stability throughout the EU. Currently, there are no safeguards at the Union level for the crypto asset market, with only individual national legislation in place. The number of crypto-asset service providers increased from seven in 2022 to 11 by the end of that year, with a total of 16 applications pending so far this year. The Chairman of the Cyprus Securities and Exchange Commission (CySEC), Dr. George Theocharides, anticipates more CASP companies will emerge once MiCA is implemented. In 2023, CySEC conducted over 700 on-site and remote thematic inspections of supervised entities, assessed compliance with prudential supervision framework limits, and monitored Cypriot Investment Firms (CIFs) affected by Russia-Ukraine sanctions. CySEC also evaluated promotional material of over 35 CIFs, conducted investigations into CIFs, and imposed administrative sanctions totaling approximately EUR 2.2 million in 2023, with a total of EUR 6 million in administrative sanctions over the last three years. Additionally, 19 cases of CIFs had their operating licenses revoked or suspended. Dr. Theocharides highlighted the importance of the upcoming MiCA regulation for crypto-asset service providers, aimed at ensuring investor protection and market integrity. He urged investors to be cautious when investing in crypto-assets due to the associated risks. Despite challenges, the capital market in Cyprus remains of significant interest, with 82 entities receiving approval in 2023 and the number of supervised entities at 830 by the end of February 2024. CySEC also participated in events promoting financial literacy and issued warnings about entities posing as CySEC officials or imitating its website.
The Organisation for Economic Cooperation and Development (OECD) has stated that UBS’s rescue takeover of Credit Suisse has introduced new risks and challenges for the Swiss economy, despite stabilizing financial stability. The merger, which was the largest bank merger since the global financial crisis, has significantly increased UBS’s size, making it a more dominant force in the Swiss banking sector. The OECD has raised concerns about UBS’s domestic dominance and the potential need for stronger financial regulation. The Financial Stability Board has also highlighted the risks posed by UBS’s failure to Switzerland and has called for stronger bank controls. The Swiss government is considering proposals to enhance regulations for big banks. The OECD report also mentions that the merger could lead to significant job losses but believes the Swiss labor market can absorb these losses. Additionally, the report notes that the Swiss housing market, while showing signs of cooling, still has vulnerabilities with properties being overvalued by up to 40%. The average price for an apartment in Switzerland has risen to over 1 million Swiss francs, with prices in Zurich reaching 1.8 million francs. The OECD forecasts that the Swiss economy will grow by 0.9% in 2024 and 1.4% in 2025, which is below the country’s long-term average growth rate.