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 granted on 31 December, 2002 a banking business licence to BNP Paribas Cyprus Ltd, a wholly owned subsidiary of BNP Paribas S.A. of France, to carry on banking business in and from within Cyprus in the form of an International Banking Unit (“IBU”).
BNP Paribas S.A. is the entity created after the merger of the two large French banks BNP and Paribas in May 2002. The Group’s total assets amounted to €825 billion as at 31 December 2001. Today, BNP Paribas S.A. is the largest bank in France and in the EURO Zone by market capitalisation. It maintains a presence in 85 countries and is involved in the provision of a wide spectrum of financial services, through various subsidiary and associate companies in Europe, America, Africa and Asia.
BNP Paribas Cyprus Ltd will take over all the assets, liabilities and business operations of the existing branch of Banque Nationale de Paris Intercontinentale S.A. which has been operating in Cyprus in the form of an IBU since 1985. BNP Paribas Cyprus Ltd will deal primarily in foreign currencies and transact business with natural or legal persons who are non-residents of Cyprus, situated either in Cyprus or abroad. As an exception, medium and long-term lending in foreign currencies to Cyprus residents (natural or legal persons) has been allowed, within the framework of liberalising Cyprus’s financial system, as from 1 January, 2001. BNP Paribas Cyprus Ltd will also be offering authorised investment services in foreign currencies to both residents and non-residents of Cyprus (natural or legal persons). BNP Paribas Cyprus Ltd will be subject to the supervision and inspection of both the Central Bank of Cyprus and the French Banking Commission.
The decision of BNP Paribas Group of France to upgrade its presence in Cyprus by setting up a subsidiary bank for the purposes of carrying international banking business is another indication of our country's success in attracting international banks and financial institutions as a result of Cyprus' international recognition as a reputable regional banking/financial centre and of the business opportunities which are expected to arise from the forthcoming full integration of Cyprus to the European Union.
Currently, there are 29 IBUs operating from within Cyprus and 3 Representative Offices of foreign banks 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.