Bank of Cyprus acquires portfolio from Cyprus Development Bank

Bank of Cyprus has reached an agreement to acquire a portfolio of performing loans valued at €150 million and deposits totaling €500 million from the Cyprus Development Bank (CDB). This acquisition follows a broader industry trend where systemic banks absorb the healthy assets of smaller, non-systemic institutions. Following the 2013 financial crisis, the Cypriot banking sector has shifted its focus toward consolidation, profitability, and increased market share. Recent examples of this consolidation strategy include Alpha Bank's previous acquisition of assets from AstroBank. Systemic banks operating in Cyprus are under the direct supervision of the European Central Bank and the Single Supervisory Mechanism. In contrast, non-systemic banks, such as the Housing Finance Corporation and Ancoria Bank, remain under the regulation of the Central Bank of Cyprus. Industry analysts note that this trend of acquisitions is reducing the number of non-systemic entities in the local market.