Cyprus has a sophisticated and advanced financial services sector, which is expanding year over year. Banking is the largest component of the sector, and is regulated by the Central Bank of Cyprus. The banking system is fully harmonized with EU legislation and directives. Commercial banking arrangements and practices follow the British model and there are currently over 40 Cypriot and international banks operating in Cyprus.
All banks maintain correspondent networks around the world and are able to carry out both traditional and specialized financial transactions. Short and long-term borrowing is available from the Cyprus banking system and from the other financial institutions. Companies locating to Cyprus typically find that the financial institutions offer a tailored package drawn from a wide range of basic financing products. For eligible companies, capital funding can also be raised through the Cyprus Stock Exchange (CSE). There are no restrictions on foreign investors’ access to financing in Cyprus and borrowing from foreign sources is not restricted.