Overcoming the Crisis in Cyprus Gikas A
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Independent Due Diligence of the Banking System of Cyprus
PIMCO Europe Ltd 11 Baker Street London W1U 3AH England Tel: +44 20 3640 1000 Independent Due Diligence of the Banking System of Cyprus March 2013 Legal Disclaimer and Limiting Conditions This report sets forth information contemplated by the engagement of PIMCO Europe Ltd (together with its affiliates, “PIMCO”) by the Steering Committee (as defined herein) and is prepared in the form contemplated by the agreement between PIMCO Europe Ltd and the Central Bank of Cyprus (the “Agreement”). This report is intended to be read and used as a whole and not in parts. Separation or alteration of any section or page from the main body of this report is expressly forbidden. This report has been prepared exclusively for the Steering Committee. There are no third party beneficiaries with respect to this report, and PIMCO expressly disclaims any liability whatsoever (whether in contract, tort or otherwise) to any third party. PIMCO makes no representation or warranty (express or implied) to any third party in relation to this report. A decision by the Steering Committee to release this report to the public shall not constitute any permission, waiver or consent from PIMCO for any third party to rely on this report. Access to this report and its use by any third party implies acceptance by the third party of the terms and conditions contained in this section and other parts of this report. This report is, in all cases, subject to the limitations and other terms and conditions set forth herein and in the Agreement, in particular exclusions of liability. This report has been produced by using and in reliance on information furnished by third parties, including the Central Bank of Cyprus and the Participating Institutions to which this report relates. -
CAYMAN ISLANDS) LIMITED (Incorporated with Limited Liability in the Cayman Islands) As Issuer and EFG EUROBANK ERGASIAS S.A
– 6:46 pm – mac5 – 3485 Intro : 3485 Intro Prospectus EFG HELLAS PLC (incorporated with limited liability in England and Wales) as Issuer and EFG HELLAS (CAYMAN ISLANDS) LIMITED (incorporated with limited liability in the Cayman Islands) as Issuer and EFG EUROBANK ERGASIAS S.A. (incorporated with limited liability in the Hellenic Republic) as Guarantor €15,000,000,000 Programme for the Issuance of Debt Instruments Under this €15,000,000,000 Programme for the Issuance of Debt Instruments (the “Programme”), each of EFG Hellas PLC and EFG Hellas (Cayman Islands) Limited (each an “Issuer” and, together, the “Issuers”) may from time to time issue debt instruments (“Instruments”) guaranteed by EFG Eurobank Ergasias S.A. (the “Guarantor” or the “Bank”) and denominated in any currency agreed between the relevant Issuer and the relevant Dealer (as defined herein). Application has been made to the Commission de Surveillance du Secteur Financier (the “CSSF”) in its capacity as competent authority under the Luxembourg Act dated 10 July 2005 on prospectuses for securities to approve this document as a base prospectus. Application has also been made to the Luxembourg Stock Exchange for Instruments issued under the Programme to be admitted to trading on the Luxembourg Stock Exchange's regulated market and to be listed on the Official List of the Luxembourg Stock Exchange. References in this Prospectus to Instruments which are intended to be “listed” (and all related references) on the Luxembourg Stock Exchange shall mean that such Instruments have been admitted to trading on the Luxembourg Stock Exchange’s regulated market and have been listed on the Official List of the Luxembourg Stock Exchange. -
The Competition Council Has Authorized the Merger Between ALPHA BANK AE and EFG EFG EUROBANK ERGASIAS SA
The Competition Council has authorized the merger between ALPHA BANK AE and EFG EFG EUROBANK ERGASIAS SA The Competition Council has authorized the economic concentration consisting in merger by absorbtion of EFG Eurobank Ergasias SA by Alpha Bank AE. The analysis of the competition authority found that the notified economic concentration does not raise significant obstacles to effective competition on the Romanian market, respectively does not lead to the creation or strengthening of a dominant position of the merged company to have as effect restriction, prevention or significant distortion of competition on the Romanian market or on a part of it. Since both Alpha Bank AE and EFG Eurobank Ergasias SA hold in Greece more than 2/3 of turnover at European level, there is no obligation this merger to be notified to the European Commission. Community legislation provides that where each of the companies involved achieves more than 2/3 of total turnover in one of member states, the operation is analyzed by the competition authority of respective state as well as by each of the states where the involved parties activate. The merged company shall be called Alpha Eurobank SA. Alpha Bank AE is a company that is part of Alpha group, one of the most important banking and financial services groups in Greece. Alpha Group offers a wide range of services including retail banking, corporate banking, asset management, private sector banking, distribution of insurance products, investment banking, leasing, factoring, management of brokerage services and of estate assets, and brokerage services. In Romania, Alpha group holds control over Alpha Bank Romania S.A., Alpha Leasing Romania IFN S.A., SSIF Alpha Finance Romania S.A., Alpha Insurance Brokers S.R.L., Alpha Astika Akinita Romania S.R.L. -
Independent Commission on the Future of the Cyprus Banking Sector
Independent Commission on the Future of the Cyprus Banking Sector INTERIM REPORT June 2013 0 Independent Commission on the future of the Cyprus Banking Sector Interim report | 1 | Independent Commission on the future of the Cyprus Banking Sector Interim report Contents Executive summary………………………………………… 3 Acknowledgements………………………………………. 14 The Commission…………………………………………… 15 This report…………………………………………………… 16 Foreword……………………………………………………... 17 PART 1: THE RECENT PAST 1. Setting the scene………………………………………. 19 2. The Memorandum of Understanding…………… 31 PART 2: THE BANKS 3. Reforming the banking sector…………………….. 33 4. Cyprus’ international financial centre…………… 40 5. Banking competition and service quality………. 46 6. Corporate governance……………………………….. 51 PART 3: FINANCIAL STABILITY 7. The safety and soundness of banks………….... 57 8. National policy…………………………………………. 58 9. The structure of financial supervision………….. 59 10. The Central Bank of Cyprus…………………….. 61 11. Macro-prudential oversight..…………………….. 67 12. Prudential supervision and regulation……….. 71 13. Consumer protection……………………………….. 84 14. What next?................................................ 87 15. Cost/benefit analysis.………………………………. 89 16. Summary of recommendations…………………. 90 ANNEXES AND APPENDICES People and institutions interviewed………..………. 95 Appendix: Revised Terms of Reference…….…….. 96 Bibliography………………………………………………….. 98 | 1 | Independent Commission on the future of the Cyprus Banking Sector Interim report Charts and tables Charts 1. Total assets of credit institutions as % of GDP………………… 19 2. Financial intermediation: share of banks and markets…………. 19 3. Cyprus banking sector: Share of total assets………………………. 20 4. Growth of domestic credit………………………………………………… 21 5. Total resident loans as % of GDP……………………………………… 21 6. Commercial banks’ foreign lending €bn……………………………... 22 7. Deposits in locally active banks €bn………………………………….. 23 8. Cypriot banks’ funding needs €bn…………………………………….. 24 9. Interest rates on loans to non-financial corporations %........ -
School of Economics & Business Administration Master of Science in Management “MERGERS and ACQUISITIONS in the GREEK BANKI
School of Economics & Business Administration Master of Science in Management “MERGERS AND ACQUISITIONS IN THE GREEK BANKING SECTOR.” Panolis Dimitrios 1102100134 Teti Kondyliana Iliana 1102100002 30th September 2010 Acknowledgements We would like to thank our families for their continuous economic and psychological support and our colleagues in EFG Eurobank Ergasias Bank and Marfin Egnatia Bank for their noteworthy contribution to our research. Last but not least, we would like to thank our academic advisor Dr. Lida Kyrgidou, for her significant assistance and contribution. Panolis Dimitrios Teti Kondyliana Iliana ii Abstract M&As is a phenomenon that first appeared in the beginning of the 20th century, increased during the first decade of the 21st century and is expected to expand in the foreseeable future. The current global crisis is one of the most determining factors affecting M&As‟ expansion. The scope of this dissertation is to examine the M&As that occurred in the Greek banking context, focusing primarily on the managerial dimension associated with the phenomenon, taking employees‟ perspective with regard to M&As into consideration. Two of the largest banks in Greece, EFG EUROBANK ERGASIAS and MARFIN EGNATIA BANK, which have both experienced M&As, serve as the platform for the current study. Our results generate important theoretical and managerial implications and contribute to the applicability of the phenomenon, while providing insight with regard to M&As‟ future within the next years. Keywords: Mergers &Acquisitions, Greek banking sector iii Contents 1. Introduction ................................................................................................................ 1 2. Literature Review .......................................................................................................... 4 2.1 Streams of Research in M&As ................................................................................ 4 2.1.1 The Effect of M&As on banks‟ performance .................................................. -
1 SECRET LAIKI POPULAR BANK How a Bank's Mismanagement
SECRET LAIKI POPULAR BANK How a bank’s mismanagement toppled an economy Introduction This study has been carried out following the instructions by the President of the Republic of Cyprus, Nicos Anastasiades with the aim of tracking down the causes which led the Cypriot economy to the brink of collapse. The objective is to draw lessons from the past and take corrective measures so that the country will never find itself in a similar, critical position. The documentation used is based on material from the archives of the Presidential Palace. Moreover, important confidential material of the Central Bank of Cyprus (CBC) has been utilized, which was submitted to the Investigation Committee appointed by the Ministerial Council with the task of looking into the causes which led to the financial crisis. This material has not been adequately utilized by the Committee - for reasons already explained by the Committee itself- and has been delivered to the State archive. The framework of the study’s findings is as follows: Since 2011, when the Cypriot economy was initially downgraded by international rating agencies, the problems were spotted at the banks, as a result of the Greek crisis, and to the Government’s weakness to support them financially should the need arose. Briefly, these problems can be summarized as follows: - The size of the banks was about seven times that of the economy’s GDP. - Private indebtedness (companies and households) without sufficient collateral. 1 - Cypriot banks were exposed to Greece which found itself in a protracted crisis and with a visible risk of exiting the euro area. -
12Thjune 2014 Helsinki Eba Clearing Shareholders
REPORT OF THE BOARD EBA CLEARING SHAREHOLDERS MEETING 12TH JUNE 2014 HELSINKI Contents 1. Introduction 3 2. The Company’s activities in 2013 5 2.1 EURO1/STEP1 Services 5 2.2 STEP2 Services 8 2.3 Operations 15 2.4 Legal, Regulatory & Compliance 18 2.5 Risk Management 20 2.6 Other corporate developments 21 2.7 The MyBank initiative 23 2.8 Activities of Board Committees 23 2.9 Corporate matters 26 2.10. Financial situation 29 3. The Company’s activities in 2014 32 3.1 EURO1/STEP1 Services 32 3.2 STEP2 Services 33 3.3 PRETA S.A.S. 35 3.4 Other relevant matters of interest 36 Appendix 1: Changes in EURO1/STEP1 participation 37 Appendix 2: List of participants in EURO1/STEP1 40 Appendix 3: List of direct participants in STEP2 45 Appendix 4: Annual accounts for 2013 53 2 EBA CLEARING SHAREHOLDERS MEETING // 12th June 2014 // Report of the Board 1. Introduction 2013 was marked by the major changeover that the SEPA migration end-date for euro retail payments of 1st February 2014 represented for payment service providers in the Eurozone and their customers. SEPA migration-related activities were also the top priority for EBA CLEARING throughout 2013. The Company continued to strengthen and enhance the STEP2 platform and intensified its customer support activities to assist its users across Europe in ensuring a disruption-free changeover to the SEPA instruments for their customers. SEPA migration affirmed the position of the STEP2 platform among the leading retail payment systems in Europe. The timely delivery of its SEPA Services as well as the processing capacity, operational robustness and rich functionality of the system made STEP2 the platform of first choice of many European communities in preparation of and during this migration. -
EUROBANK ERGASIAS S.A. €5 Billion Global Covered Bond
BASE PROSPECTUS EUROBANK ERGASIAS S.A. (incorporated with limited liability in the Hellenic Republic with registration number 000223001000) €5 billion Global Covered Bond Programme Under this €5 billion global covered bond programme (the Programme), Eurobank Ergasias S.A. (the Issuer) (formerly known as EFG Eurobank Ergasias S.A., which changed its name to Eurobank Ergasias S.A. on 2 August 2012) may from time to time issue bonds (the Covered Bonds) denominated in any currency agreed between the Issuer and the relevant Dealer(s) (as defined below). Application has been made to the Commission de Surveillance du Secteur Financier (the CSSF) in its capacity as competent authority under the Luxembourg Act dated 10 July 2005 on prospectuses for securities (as amended) (the Prospectus Act 2005) to approve this document as a base prospectus (the Base Prospectus). By approving this base prospectus, the CSSF does not give any undertaking as to the economic and financial soundness of the operation or the quality or solvency of the Issuer in accordance with Article 7(7) of the Prospectus Act 2005. Application has also been made to the Luxembourg Stock Exchange for Covered Bonds issued under the Programme to be admitted to trading on the Luxembourg Stock Exchange’s regulated market and to be listed on the official list of the Luxembourg Stock Exchange (the Official List). This document comprises a base prospectus for the purposes of Article 5.4 of Directive 2003/71/EC as amended (which includes amendments made by Directive 2010/73/EU to the extent that such amendments have been implemented in a relevant Member State of the European Economic Area) (the Prospectus Directive) but is not a base prospectus for the purposes of Section 12(a)(2) or any other provision of or rule under the United States Securities Act of 1933 (as amended) (the Securities Act). -
Cyprus Popular Bank Public Co Ltd
CYPRUS POPULAR BANK PUBLIC CO LTD ANNOUNCEMENT Further to its announcements dated August 16 and August 27, 2012, Cyprus Popular Bank Public Co Ltd announces that during a meeting held today, its Board of Directors approved the Financial Report of the Group for the period January – June 2012. The Financial Report, as well as a relevant Presentation and Press Release are attached hereto. Data and information for the Financial Report will be published in the newspaper “Politis” in Cyprus, on Saturday, September 1, 2012. The Financial Report will also be available at the Group’s website (www.laiki.com), the Cyprus Stock Exchange website (www.cse.com.cy), as well as at the Athens Exchange website (www.ase.gr). Copies can also be obtained from the Banking Operations Support & Shares Department of the Group, 124 Strovolos Avenue, 4th floor, 2042 Strovolos, Nicosia. CYPRUS POPULAR BANK PUBLIC CO LTD Jacqueline Loizides-Lambert Secretary Nicosia, 31 August 2012 CYPRUS POPULAR BANK PUBLIC CO LTD GROUP INTERIM MANAGEMENT REPORT OF THE BOARD OF DIRECTORS (continued) PRESS RELEASE FIRST HALF 2012 RESULTS 31 August 2012 - LAIKI BANK GROUP IN ADJUSTMENT PROCESS - TRANSITION PERIOD ΤΟWARDS PROFITABILITY - STRENGTHENING THE BALANCE SHEET THROUGH RESERVE BUFFERS SUMMARY OF FIRST HALF 2012 RESULTS REPUBLIC OF CYPRUS PARTICIPATION IN SHAREHOLDING STRUCTURE On 18 May, 2012 via the Decree issued by the Minister of Finance, the Republic of Cyprus underwrote fully the €1,8 billion rights issue of Laiki Bank, from which the arising state participation in the Bank’s capital amounted to circa 84% in June 2012. As provided by the Decree, Laiki Bank in collaboration with the appointed consultants KPMG UK, has completed and submitted to the Central Bank of Cyprus a comprehensive five-year Restructuring Plan of the Group’s operations. -
Updated As of 01/06/2017 Changes Highlighted in Yellow
NEW QUARTER TOTAL PDship per Previous Quarter Firm Legal Entity Holding Dealership AT BE BG CZ DE DK ES FI FR GR HU IE IT LV LT NL PL PT RO SE SI SK UK Current Quarter Changes Bank March 2016) ABLV Bank ABLV Bank, AS 1 bank customer bank customer 0 Abanka Vipa Abanka Vipa d.d. 1 bank customer bank customer 0 ABN Amro ABN Amro Bank N.V. 3 bank inter dealer bank inter dealer 0 Alpha Bank Alpha Bank S.A. 1 bank customer bank customer 0 Allianz Group Allianz Bank Bulgaria AD 1 bank customer bank customer 0 Banca IMI Banca IMI S.p.A. 3 bank inter dealer bank inter dealer 0 Banca Transilvania Banca Transilvania 1 bank customer bank customer 0 Banco BPI Banco BPI + 1 bank customer bank customer 0 Banco Comercial Português Millenniumbcp + 1 bank customer bank customer 0 Banco Cooperativo Español Banco Cooperativo Español S.A. + 1 bank customer bank customer 0 Banco Santander S.A. + Banco Santander / Santander Group Santander Global Banking & Markets UK 6 bank inter dealer bank inter dealer 0 Bank Zachodni WBK S.A. Bank Millennium Bank Millennium S.A. 1 bank customer bank customer 0 Bankhaus Lampe Bankhaus Lampe KG 1 bank customer bank customer 0 Bankia Bankia S.A.U. 1 bank customer bank customer 0 Bankinter Bankinter S.A. 1 bank customer bank customer 0 Bank of America Merrill Lynch Merrill Lynch International 9 bank inter dealer bank inter dealer 0 Barclays Barclays Bank PLC + 17 bank inter dealer bank inter dealer 0 Bayerische Landesbank Bayerische Landesbank 1 bank customer bank customer 0 BAWAG P.S.K. -
P. Demetriades, Minsky 2019
Hyman P Minsky Conference Levy Instutute, Bard College 17 April 2019 Session on Outlook for reform of the euro system Central bank independence Panicos Demetriades and the future of the euro !1 Outlook for reform • Much of the discussion has focussed on gaps in the euro’s architecture • A European Deposit Insurance Scheme (EDIS) to complete the banking union - Germany demanding risk reduction (including reducing NPLs) before agreeing to Commission proposals • Disagreements between France and Germany centering around risk sharing vs risk reduction have meant that moves towards more risk sharing have stalled • Franco-German economists proposal aims to break the deadlock by recommending measures to both reduce risk and improve risk sharing • Little discussion on whether the current architecture is working, instead Eurozone is congratulating itself for getting through the crisis with the euro intact !2 The euro has survived the crisis…but at what cost? • Major setbacks to central bank independence (CBI) • Since 2014, four Eurosytem central bank governors have resigned or were removed from office (Cyprus, Slovenia, Latvia, Slovakia) • Others have come under political pressure to resign (e.g. Greece, Portugal) • Appointments of cronies and unqualified sympathisers on central bank boards • Money laundering scandals have embarassed the ECB (Latvia, Estonia, Malta, Cyprus) and have exposed new financial stability risks (e.g. bank run on ABLV) • They have exposed the incompleteness of the first pillar of the banking union - banking supervision - as -
Understanding of the Financial Crisis in Cyprus, Its Effects and the Post Crisis Strategy
Understanding of the Financial Crisis in Cyprus, Its Effects and the Post Crisis Strategy Master Thesis For the Degree of Politics & Economics of Contemporary Eastern and South-eastern Europe By Eirini Kouloudi Under the Guidance of Professor Fwtios Siokis Department of Balkan, Slavic and Oriental Studies. Submitted to: University of Macedonia October, 2014 Declaration I hereby declare that this very thesis is a work of my own and all the references used while gathering of relevant data have been properly indicated. I am well aware that a false declaration may have serious consequences. Date: ---------------------------------------- (Signature) Cypriot Financial Crisis Page 1 Abstract This paper focuses on Cypriot economy with a special emphasis on the effects and aftermath of the financial crisis that it has gone through. An overview of the island’s economy and its key elements will help to get the thorough understanding of what had gone behind the screen. Cypriot banking system in general and the situation around the globe that helped shape the crisis will form part of the project. Situation around Europe, Admittance into EU and ultimately Euro played an equally important part in the financial crisis history of the country. Banking operations and especially the expansion program devised by the biggest banks will be criticised. Early symptoms and Cypriot entry into the financial difficulty will be highlighted along with all the other factors that contributed to the ultimate demise of the huge banking empire. The crisis period will form a part of the paper with all the relevant factors be considered. European Union’s part and other unfortunate events will be analysed throughout in the later area of this paper.