CyprusProfile.com asked the Governor of the Central Bank of Cyprus Constantinos Herodotou which key areas of opportunity or growth he sees in the banking sector, and what his expectations are for Cyprus in 2019.

According to the Supervisors’ expectations and strategic and business plans, banking institutions shall continue their efforts to clean-up their balance sheets from the legacy assets, such as non-performing loans and real estate assets. It is anticipated that banks will take advantage of the current economic recovery and the available legal tools in order to continue with the disposal of certain assets and internally through workouts by their specialised units. Further structural changes in their business models are also expected, with the ultimate target being the establishment of sustainable business models and robust balance sheets.