{
  "title": "Cyprus: Financial Sector Assessment Program: Financial System Stability Assessment",
  "publication": "IMF Staff Country Reports, November 3, 2009",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2016/12/31/cyprus-financial-sector-assessment-program-financial-system-stability-assessment-23381",
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  "summary": "This paper discusses key findings of the Financial System Stability Assessment on Cyprus. The assessment reveals that the banking system of Cyprus has managed to avoid the worst effects of the global financial crisis, but stress tests confirmed that credit risk remains high.",
  "sections": [
    {
      "heading": "Executive summary and key findings",
      "content": "- The banking system of Cyprus \"managed to avoid the worst effects of the global financial crisis.\"\n- Stress tests confirmed that \"credit risk remains high.\"\n- The assessment recommends that work on the \"crisis contingency framework should be completed.\""
    },
    {
      "heading": "Main analysis points",
      "content": "- Stress testing and simulation exercises were used to assess resilience; results indicated elevated credit risk despite avoidance of the worst crisis outcomes.\n- The assessment highlights the need for stronger contingency arrangements at both national and EU levels to address potential systemic stress."
    },
    {
      "heading": "Policy recommendations and ongoing initiatives",
      "content": "- Complete the crisis contingency framework.\n- EU-wide and national initiatives already under way include:\n  - Strengthening deposit insurance.\n  - Drafting guidelines for emergency liquidity assistance.\n  - Adopting a legal framework for covered bonds to facilitate access to European Central Bank refinancing."
    },
    {
      "heading": "Subjects and technical scope",
      "content": "- Subject areas covered: Banking; Commercial banks; Cooperative banks; Financial institutions; Financial Sector Assessment Program; Financial sector policy and analysis; Loans; Stress testing.\n- Keywords: bank; banking sector; central bank; Commercial banks; Cooperative banks; CR; Cypriot authorities; Cypriot bank; Cyprus; EU accession; EU banking directive; EU member; Europe; Financial Sector Assessment Program; financial system; Global; ISCR; Loans; return on assets; simulation exercise; Stress testing.\n\n---\n\n Content in this bundle\n\n- Cyprus — Financial System Stability Assessment\n  - Cyprus — Financial System Stability Assessment (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Cyprus — Financial System Stability Assessment (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
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  "bullets": [
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    "Published: November 3, 2009",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781451809985.002",
    "The banking system of Cyprus \"managed to avoid the worst effects of the global financial crisis.\"",
    "Stress tests confirmed that \"credit risk remains high.\"",
    "The assessment recommends that work on the \"crisis contingency framework should be completed.\"",
    "The assessment highlights the need for stronger contingency arrangements at both national and EU levels to address potential systemic stress.",
    "Complete the crisis contingency framework.",
    "EU-wide and national initiatives already under way include:",
    "Subject areas covered: Banking; Commercial banks; Cooperative banks; Financial institutions; Financial Sector Assessment Program; Financial sector policy and analysis; Loans; Stress testing.",
    "Keywords: bank; banking sector; central bank; Commercial banks; Cooperative banks; CR; Cypriot authorities; Cypriot bank; Cyprus; EU accession; EU banking directive; EU member; Europe; Financial Sector Assessment Program; financial system; Global; ISCR; Loans; return on assets; simulation exercise; Stress testing.",
    "**Cyprus — Financial System Stability Assessment**"
  ],
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