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Grey matters: Marios Clerides and Constantinos Stephanou, “The financial crisis and the banking system in Cyprus” (1 July 2009).
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Cyprus Economic Policy Review, Vol. 3, No. 1, 2009. Available at SSRN: http://ssrn.com/abstract=1431223

Abstract:
This paper briefly reviews the causes and propagation mechanisms of the global financial crisis, and the types of policy responses that have been undertaken to date in order to mitigate its adverse effects. It subsequently examines the way that it has been transmitted to the Cypriot banking system, and looks at the impact of the crisis on Cypriot banks so far.

CFR comment:
The authors, the head of risk management for Hellenic Bank and a senior economist at the World Bank, provide an interesting assessment of the impact of the financial crisis on the Cypriot banking sector, including some discussion of the role of offshore deposits in those banks. The overview of the financial crisis is thoughtful and concise; the paper will be of most interest to those involved with Cypriot financial institutions.

 
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