The banking system in Cyprus closely follows the British pattern and is well developed and organized whilst being equipped with the latest technology in modern surroundings. The banking system consists of, 30 international banking units, 4 administered banking units, 3 specialised financial institutions and a number of leasing companies. Over 1,200 International Business Corporations currently maintain fully fledged offices in Cyprus.

The banking system also encompasses the co-operative credit institutions, which are supervised by the Co-operative Societies’ Supervision and Development Authority. Local banks have managed to develop strong correspondent networks around the work thus, enabling them to have easy access to the world banking network and being able to carry out traditional and specialized financial transactions. The banking system is sophisticated and well-equipped with modern technology. It is relatively easy to transfer salaries, pensions and income from abroad into Cyprus.

The Central Bank of Cyprus, by virtue of the powers conferred upon it by the Central Bank of Cyprus law, is the licensing authority for the conduct of banking business and for the supervision of banks. The Central Bank of Cyprus has always been guided in its supervisory role by the recommendations of the Basle Committee on Banking Supervision and implements the EU Directives on Banking regulation while following up closely new developments and having its prudential functions under constant review to take account of these developments and changing circumstances.  Its main responsibility is to ensure a safe and stable financial system that would preserve public confidence and foster economic stability and growth. This objective is satisfied by maintaining an effective mechanism of bank regulation and supervision.