- Funding Programme
- Year
- 2023
National Resolution Handbook for Cyprus
The European Commission supports the Central Bank of Cyprus in its role as the National Resolution Authority (NRA) with the preparation of a National Handbook containing detailed guidelines for the operationalization of the resolution tools in Cyprus.
Context
The Single Resolution Board (“SRB”) as part of its priorities to enhance Member States’ crisis preparedness provided a “Common Index” with the minimum contents of a National Handbook as best practice for the preparation, adoption and implementation of resolution actions for financial institutions. To adapt to the Common Index provided by the SRB and to the requirements of the EU legislation for Bank Recovery and Resolution, Cyprus needs to develop a National Handbook for the resolution tools. The project will support the development of a National Handbook for an effective implementation of the resolution tools and contribute to the Banking Union priority.
Support Delivered
The support will consist of the development of the National Resolution Handbook by preparing a) As-Is report, b) To-Be report, c) National Handbook and d) Capacity Building Workshops. The support will aim to strengthen knowledge and capacity of the beneficiary and enhance its preparedness to deal with credit institutions in distress.
Result achieved
Key result of the project is the preparation of National Resolution Handbook, which allows the beneficiary effective dealing with credit institutions in distress. Additionally, knowledge and capacity in the same area will be strengthened through capacity building workshops. Expected improvement on the ground includes a) consistent and coherent application of the resolution framework within the Banking Union, b) reduction of operational and other risks in its practical implementation, and c) assurance of financial stability and better protection of public funds while minimizing the potential spill-over impacts on the real economy.