Bank of Cyprus, the island’s historic lender, could constitute an acquisition target for the National Bank of Greece, according to a report on the Greek credit sector released by Deutsche Bank.
National Bank of Greece has its own subsidiary in Cyprus, but Bank of Cyprus could be a very beneficial addition to the Greek group’s portfolio, the German bank noted.
It added that Bank of Cyprus is the ideal candidate for such a takeover, with nearly the rest of the Cypriot credit sector already in the hands of Greek banks.
Nevertheless, it appears unlikely at the moment that the Cypriot government would examine the possibility of leaving the island’s credit sector without a significant domestic player.
The branches of Bank of Cyprus in Greece were absorbed by Piraeus Bank in spring 2013. However NBG had also tabled an offer to be the one to absorb them 13 years ago.
