Cyprus banks told to cut their charges
The governor of the Central Bank of Cyprus, Christodoulos Patsalides, has called on banks to consider the social dimension of their pricing policies while enhancing the economy’s competitiveness. In an interview with the Cyprus News Agency, Patsalides warned of the risk of damaging the banking sector’s reputation if these factors are ignored.
Ahead of the European Central Bank’s upcoming monetary policy meeting on October 18, Patsalides pointed to sluggish economic growth in the eurozone and indicators like the Purchasing Managers’ Index (PMI), which fell below 50, suggesting potential room for interest rate cuts. However, he stressed the need for thorough discussions, considering the impact of ongoing Middle East developments.
Patsalides highlighted Cyprus’ economic resilience in the face of external shocks, with growth rates well above the EU average. He urged the continued expansion of the productive sector, fiscal discipline, structural reforms, and governance improvements based on best international practices.
While acknowledging the strong capital and liquidity levels of the banking system, Patsalides cautioned against complacency. He emphasized emerging risks such as geopolitical tensions, climate change and cybersecurity.
