Bank SAFETY

is my money safe? Do the banks in Cypress have a guarantee in case they go under?

is my money safe? Do the banks in Cypress have a guarantee in case they go under?
-@tomschnitzius3853


Hi


Yes it is safe and yes they have a new legislation coming into effect soon. Google it 😁.


P.s


Don't Bank on it lol

Safer now than they used to be . The Cyprus banks are slowly but surely getting there act together...

The Deposit Guarantee Scheme was first established in 2000 and operates as a separate legal entity since then. The Scheme consists of three funds, the Deposit Guarantee Fund for Banks, the Deposit Guarantee Fund for Cooperative Credit Institutions and the Resolution Fund of Credit and Other Institutions...



https://acb.com.cy/deposit-protection-s … titutions.

Cyprus banks and collapse of SVB etc

None of these idiosyncratic causes of the current turmoil are present in the Cypriot banking system. It is not just a matter of better regulation and the credibility of the European Central Bank. Nor is it that Cypriot banks are very well capitalised. It is rather the nature of their balance


sheets and the changes that have taken place in the private economy since the crisis of 2012-14 that are fundamentally different now. Cypriot banks have very modest exposure to long-dated fixed-income securities, and at the same time, they have a lot of liquidity. Second, total private debt in the economy has been reduced significantly over the past decade, standing now at less than 80 per cent of GDP compared with 270 per cent at the end of 2012. Bank credit is therefore relatively low in comparison, while capital buffers are comfortably high. Lower private debt means companies are less dependent on bank credit and their interest expenses is a much smaller share of their turnovers.


A third reason has to do with the difference between real and nominal interest rates. What really matters is the real interest rate, which is the nominal interest rate minus inflation. Despite the significant rise in nominal interest rates, real interest rates are still low.


Understandably, a higher interest rate environment creates stress in the broader financial system, but the fundamentals of the Cypriot banking system are not comparable to the problems that have plagued banks in the United States or even Credit Suisse.


Source .... https://cyprus-mail.com/2023/03/27/turm … iot-banks/

@Toon thank you for the clarity which is very helpful!