Cypriots use playing cards 1.3 occasions extra typically than different Europeans, whereas contactless card funds will steadily account for greater than half of all card funds by 2022, Central Financial institution Governor Christodoulos Patsalidis mentioned in his speech on Thursday on the twelfth Banking Discussion board and Fintech Expo, in Nicosia.
As he mentioned, the principle priorities of the Central Financial institution of Cyprus embrace developments within the digital economic system, the evolving position of digital funds, the doable introduction of a digital euro and regulatory frameworks that guarantee accountable governance and social parameters in monetary methods. “Via these efforts, we goal to strengthen Cyprus' place as a dynamic participant within the European monetary panorama,” he famous.
The Governor of the CBC mentioned that the Cypriot economic system has demonstrated resilience and flexibility regardless of ongoing vital geopolitical challenges. “Lately, Cyprus has achieved sturdy progress charges, nicely above the EU common, and has maintained a robust fiscal place, recording constant surpluses which have strengthened public funds,” he mentioned, noting that in consequence, worldwide score companies have upgraded their rankings to investment-grade ranges, pointing to sound monetary administration, fiscal self-discipline and reforms within the banking sector.
The Cypriot banking sector, the Governor continued, has developed outstanding resilience and resilience regardless of a sequence of unprecedented and successive crises lately. The sector's solvency, as indicated by the Frequent Fairness Tier 1 (CET1) ratio, elevated to 23.5% within the third quarter of 2024, reaching its highest degree in historical past and considerably exceeding the European common of 16%. Moreover, the Liquidity Protection Ratio (LCR) reached 336% in September 2024. The non-performing mortgage (NPL) ratio decreased to six.5% within the third quarter of 2024, marking its lowest degree since 2014.
Nevertheless, he mentioned, there isn’t a room for complacency as macroeconomic uncertainty, geopolitical dangers and rising threats comparable to cyber and local weather change dangers improve. Banks should adapt shortly to establish and successfully tackle these evolving challenges. As well as, technological developments are creating a brand new panorama through which banks should compete. The seek for an acceptable enterprise mannequin is the important thing”, pressured the Governor of the CBC.
Giving examples of revolutionary applied sciences utilized in monetary companies, the Governor cited synthetic intelligence, cloud computing, digital wallets, massive information analytics and biometrics and mentioned these have been carried out to enhance customer support, automating funds, redesigning enterprise processes, detecting suspicious exercise and supporting buyer profiling and digital inclusion. “Nevertheless, we’ve but to see the potential realized in different promising new applied sciences comparable to distributed ledger expertise (DLT), good contracts and curiosity,” he mentioned.
It mentioned some of the necessary tendencies is the unfold of digital funds, which now account for round 96% of cashless funds, including that on the similar time, the choice for money funds is declining, falling 11% from 2022, bringing Cyprus on the prime of the eurozone international locations.
The usage of cellphones for on-line buying has nearly reached 1 / 4 of the whole, surpassing the EU common of 16%, he added.
Since January 9, instantaneous funds have develop into a actuality for everybody, lowering transmission inside 10 seconds, with instantaneous entry to funds on a 24/7/365 foundation, mentioned Mr. Patsalidis.
Supply: KYPE
