The Cyprus-registered company is a subsidiary of Ancoria Insurance, which has been based on the island for the last 27 years. Though registered as a Cypriot company, Ancoria Insurance is tied to the Swedish group Ancoria. Ancoria Holdings submitted on Monday its application for a new bank as well as its business plan to the Central Bank of Cyprus (CBC). The CBC governor promised to examine the application “as soon as possible.”

Dinos Christofides, project leader for Ancoria Holdings, told the Cyprus Mail that if the license is granted, the company plans to initially open two branches, one in Nicosia the other in Limassol. “It will be a purely Cypriot banking operation,” stressed Christofides. The initial investment would come to around €50m, but the shareholders might later pour in an additional €50m should business go well. The company’s major shareholder is Sievert Larsson.

The bank will provide the entire spectrum of services offered by commercial banks in Cyprus – including savings and loans to individuals and businesses. But its operations will focus on small-to-medium enterprises. “We view SMEs as the backbone of the Cyprus economy,” said Christofides. Asked whether this is a wise move given the ongoing financial crisis here, Christofides said the investors behind Ancoria are confident the Cyprus economy can bounce back.

If granted the license, the company plans to rename itself to Ancoria Bank. The staff – at the head office, plus the two branches – is expected to number around 70 people. An effort would be made to give priority to hiring Cypriots as far as both management and blue-collar staff are concerned. And the bank’s board of directors will comprise both Cypriots and western Europeans, Christofides said.

Source: Cyprus Mail