The Bank of Cyprus Public Company Ltd, building on its robust corporate governance framework and the commitment of its Board of Directors to best practices has won the World Finance Award for Best Corporate Governance in Cyprus for the third consecutive year (2017, 2018, 2019).
The award is a testament to the Bank’s continuous efforts to reshape the future of the Cyprus banking environment and enable sustainable growth to create a safer, stronger, more focused institution capable of supporting the recovery of the Cypriot economy.
The Bank of Cyprus capitalising on the diversity of its Board of Directors – in terms of skills, background, gender, ethnicity, age and experience – is taking solid strides in operating in a state of the art corporate governance environment within prudent and effective controls which enable risk to be assessed and managed. The tone from the top reaffirming the maintenance of zero-tolerance towards non-compliance with policies and regulations nurtures a culture and a mind-set that is aware of risk and maintains it within the Risk Appetite Framework approved by the Board.
Transparency is a moto the Bank has embraced and to this respect has uploaded its policies on the website and enriched the corporate governance section of its website to include as much information as would be of interest to its customers, investors and shareholders. External and internal communication with all stakeholders is actively pursued since achieving best practice in corporate governance is a dynamic process between the Board, management, shareholders and other stakeholders and the Board of Directors of the Bank of Cyprus is committed to this respect.
In the past five years, the Bank was significantly recapitalized with external funds. ELA was fully repaid ahead of most people’s expectations. Deposits have grown substantially as customer trust has been re-established. Unprofitable overseas businesses were disposed of and capital brought back to support the Cyprus operations. Non-performing loans have been significantly reduced from €15billion to €4.8 billion and the effort continues. Capital now stands at 18% and the loan-to-deposit ratio stands at 65%.
The Bank has now embarked on a digital and physical transformation of its Cyprus operations and has already experienced better customer engagement and the recovery of trust with its customers, supervisors and society.