Developments involving two smaller Cypriot banks are reshaping the country’s banking sector, pointing to further consolidation in an industry that has steadily strengthened in recent years.
The transactions concern Ancoria Bank and CDB Bank. Ancoria is expected to undergo a significant ownership change once regulatory approvals are completed. A detailed application submitted by major XM shareholders Kostas Kleanthous and Charalambos Panayiotou is still under review. Regulators are reportedly examining a series of questions and data points before making a decision.
In the case of CDB Bank, Bank of Cyprus has already announced the acquisition of the “healthy” part of the bank, including selected loans, deposits and other assets and liabilities.
Market sources say both processes are still ongoing and remain subject to regulator approvals.
These moves are likely to be among the final major transactions in the Cypriot banking sector, barring any unexpected developments, leaving six banks operating by the end of the year: Bank of Cyprus, Eurobank Ltd., Alpha Bank Cyprus, National Bank of Greece (Cyprus), Ancoria Bank and Societe Generale Cyprus.
