A HOT topic in the current news cycle – the pros and cons of a separate asset management and development bank – will be covered in an open panel discussion here next week.
The event will be held on Tuesday, August 27 at 6.30 pm at the auditorium of the Bank of Cyprus (BoC) headquarters in Ayia Paraskevi, Nicosia. Sponsored by the BoC and others, the event is being organized by the Institute of Directors (Cyprus).
Central Bank governor Panicos Demetriades and finance minister Harris Georgiades have been invited to make a welcoming introduction. The panelists will then speak briefly about the merits and challenges of independently managed asset management banks as well as the strategies followed and funding issues. They will next take questions from the audience.
Moderating the discussion will be former finance minister Michalis Sarris. The panelists are Mike Aynsley, Lars Nyberg and Theodore Panayiotou.
Aynsley led the restructuring and reorganization of the Irish Bank Resolution Corporation Limited (formerly Anglo Irish Bank and the acquired Irish Nationwide Building Society).
Anglo Irish Bank, which has been referred to as ‘the world’s most toxic bank’, was nationalised by the Irish government in January 2009 following management scandals and a collapse in commercial real estate values in Ireland.
In July 2011 Anglo acquired the Irish Nationwide Building Society at the request of the Minister for Finance and charged with the wind down of both entities which are currently estimated to cost the Irish taxpayer between €29 and €34 billion.
Nyberg was the deputy CEO of Föreningsbanken and involved in restructuring and recapitalising the bank during the Swedish banking crisis of 1991-1993. Between 1999 and 2011 Nyberg served as Deputy Governor of the Swedish Central Bank. He chaired for a number of years the European Central Bank Task Force on Crisis Management.
Panayiotou is the director of the Cyprus International Institute of Management. He has published over 100 papers, monographs and books on environmental economics, policy and management
BoC said last month it is considering splitting its operations into a retail unit and an asset management company. The lender has commissioned a study into splitting the bank as part of a broader restructuring scheme which should be ready at the end of September.
The revelation was triggered unease from political parties that the bank could use the asset management division to auction off certain properties held against non-performing loans.
The bank said its survey would not be considering the transfer of private household mortgages to the asset management company.