Lessons Learned from the 2013 Banking Crisis in Cyprus Cover Image

Lessons Learned from the 2013 Banking Crisis in Cyprus
Lessons Learned from the 2013 Banking Crisis in Cyprus

Author(s): Daniel Stavárek
Subject(s): Economic policy, Government/Political systems, Political economy, Financial Markets
Published by: Masarykova univerzita
Keywords: banking crisis; Cyprus; bailing-in; crisis resolution;
Summary/Abstract: The Cypriot banking crisis in 2013 led to closing commercial banks, capital controls and economic as well as political instability. The Troika has agreed with the Cypriot government on a plan that should resolve the problems in banking sector and stabilize the economic and financial environment. This paper overviews the specifics of the Cypriot banking system and puts them into relation with the crisis. The rescue program and its individual components are examined and adequacy of the bail-in approach is discussed.