InsiderEconomyBanking sector in Cyprus shrinking year in year out

Banking sector in Cyprus shrinking year in year out

The banking sector in Cyprus has been shrinking over recent years with the total number of branches island-wide reduced to 260 last year compared to 282 in 2020.

In 2019, the total number was 328 and this indicates that – within three year – the sector had shrunk by 26.15%, Philenews reports citing the 2021 annual report of the Association of Banks.

At the same time, bank employees have decreased by 59.22% over the past nine years with a total of 4,781 employees leaving the profession. This number does not include the 550 Bank of Cyprus employees who recently opted for early retirement.

As for bank branches closing down over the past nine years the total number now stands at 590.

The figures reflect the rapid shrinking of the branch network and reduction of staff through generous voluntary retirement plans.

Undoubtedly, the banking system’s state of play has changed drastically in recent years following  branch closures and mergers while restructuring continues with the diversification of growth strategies.

And this means fewer branches and digitization of transactions.

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