Central Bank of Cyprus (CBC) governor Christodoulos Patsalides on Monday presented a new governance model for the bank to the House finance committee.

According to an announcement by the CBC, the proposals include legislative amendments to ensure that the central bank “can effectively fulfil its mandate”.

“The new structure will be based on the lean and efficient model of the German Bundesbank,” Patsalides said.

“The highest authority will be a six-member executive council where decisions are taken by majority vote,” he added.

The governor will serve as chair of the council with the deputy governor as vice-chair.

The governor will also participate in the European Central Bank’s decision-making body on monetary policy.

Terms for the six members will be seven years and non-renewable.

Meanwhile, Patsalides also briefed the committee on the 2026 state budget, international and Cypriot economic developments, and the banking sector.

The central bank views the 2026 budget positively, the governor said, but highlighted the need to address rising pressure from inflexible expenditures due to heightened uncertainty.

He mentioned that Cyprus maintains a healthy and resilient economy, but a number of risks could negatively affect the country.

These include geopolitical tensions, trade fragmentation, regional conflicts, high financial market valuations, cyber-attacks, crypto growth, and climate change.

“The twin surpluses in the public and banking sectors act as a buffer against these risks and must be maintained,” the announcement concluded.