EBF head Wim Mijs: Cyprus’ banks are resilient; but must remain vigilant

07:09 - 12 June 2025

Financial Services

Cyprus' banking sector is significantly stronger and more resilient than it was a decade ago, but continued vigilance is needed amid rising cyber risks, geopolitical uncertainty, and fintech competition, Wim Mijs, CEO of the European Banking Federation (EBF), has said.

Following a deep transformation since the 2013 crisis, Cyprus’ banks have slashed non-performing loans from 50% to below 9%, modernised their anti-money laundering (AML) frameworks, and embraced digitalisation, Mijs told the Cyprus News Agency. These changes, he noted, have helped improve Cyprus’ international credibility and expand its global banking partnerships.

“Cypriot banks are now a vital pillar of financial stability and economic growth,” he noted. But Mijs warned that cybersecurity threats, geopolitical instability, and big tech’s rise in retail payments are emerging challenges.

He also urged Europe to revise its regulatory mindset to unlock investment, citing the EU’s €800 billion annual investment gap and growing defence and climate funding needs. Banks can’t support the economy at scale unless we ease excessive capital rules and simplify the regulatory maze, he said.

Mijs backed reforms such as revitalising Europe’s securitization market, boosting the Capital Markets Union (CMU), and drawing on models like Sweden’s pension-investment system to channel household savings into productive assets.

He welcomed the Digital Operational Resilience Act (DORA) but warned that overlapping frameworks like the proposed Cyber Resilience Act (CRA) could burden smaller banks and create confusion.

On sustainability, Mijs stressed that SMEs must not be shut out of green finance due to data gaps or compliance complexity. “Reporting must be proportionate, or we risk undermining inclusion in the transition.”

EBF head Wim Mijs: Cyprus’ banks are resilient; but must remain vigilant

News Feed

Read More