Cyprus Central Bank launches transformation strategy for 2025-2026

The Central Bank of Cyprus (CBC) has announced a comprehensive transformation plan aimed at addressing new challenges and enhancing European integration as part of its 2025-2026 Strategy.

In a statement accompanying the release of the strategy, CBC Governor Christodoulos Patsalides stressed the necessity of rapid transformation considering the fast-changing economic, social, technological, and geopolitical landscape, alongside the pressing issue of climate change.

“Our bank must evolve quickly to meet the demands of the times for the benefit of the Cypriot economy and the European family,” Patsalides noted.

The strategy outlines 76 strategic actions that aim to foster long-term growth and stability in the Cypriot economy. It takes a proactive and comprehensive approach, defining the bank's vision, mission, strategic goals, and the essential actions needed to fulfill its objectives in both the present and future European context.

Governor Patsalides highlighted the strategy's focus on optimizing human resources and enhancing cooperation and transparency within the institution.

“The 2025-2026 Strategy aims for continuous evolution to address the CBC’s weaknesses, ensure sufficient responsiveness to its duties, and modernize the bank into a more flexible institution with a long-term perspective,” he explained.

The strategic direction is organized around three main pillars:

The first “Fix the Bank” pillar concerns the reorganization of the CBC based on a modern structure that ensures comprehensive and efficient responses to its mission. It includes strengthening risk management, enhancing internal controls, and updating operational continuity plans.

The second “Run the Bank” pillar focuses on developing a supervisory strategy for each of the bank's responsibilities, ensuring a targeted and consistent approach. It addresses staffing needs, climate change initiatives, and the establishment of a procurement unit.

The third “Change the Bank” pillar is dedicated to modernizing governance models and implementing strategies in human resources and information technology, aiming to promote excellence and innovation within the CBC. It also includes the creation of a Research and Policy Development Center to enhance the bank's influence in its areas of responsibility.

Each thematic area comprises specific actions, with responsibility assigned to designated project leads and defined timelines for implementation. Progress will be monitored through a Coordinating Team that will review a Progress Dashboard submitted monthly by each project lead.

Some actions have already start, with 33 planned for completion by the end of 2024. An additional 20 actions are scheduled for completion in the first half of 2025, with the remaining initiatives anticipated to begin within the year.

(Source: CNA)