The Governor of the Central Bank of Cyprus, Mr. Christodoulos Christodoulou, acting under the authority vested in the Central Bank of Cyprus by the Banking Law of 1997, has today granted a banking business licence to Kazkommertsbank of Kazakhstan, to carry on banking business in and from within Cyprus through a branch in the form of an International Banking Unit (“IBU”).
Kazkommertsbank was established in Kazakhstan in 1990. It offers a wide range of banking services and is the largest bank in Kazakhstan in terms of total assets, capital base, deposits and loans and advances.
Kazkommertsbank’s IBU will deal, to the extent presently allowed by the provisions of the Exchange Control Law, with natural or legal persons who are residents or non-residents of Cyprus, situated either in Cyprus or abroad. Kazkommertsbank’s IBU will be subject to the supervision and inspection of both the Central Bank of Cyprus and the National (Central) Bank of Kazakhstan.
Kazkommertsbank is the first bank from Kazakhstan which has been allowed to establish an International Banking Unit in Cyprus. Its decision to carry on banking business from within Cyprus is another indication of our country’s success in attracting international banks and financial institutions as a result of Cyprus’s international recognition as a reputable regional banking / financial centre and of the business opportunities which are expected to arise with the accession of Cyprus to the European Union.
Currently, there are 29 IBUs operating from within Cyprus and 1 Representative Office of a foreign bank in Cyprus. Other foreign banks have expressed a similar interest to establish IBUs in Cyprus and more banking business licences are expected to be granted in the near future.