The Bank of Cyprus is considering the possibility of splitting its operations as part of its restructuring scheme. The bank which was bailed out by its own depositors earlier this year is thinking of dividing its operations into retail and asset management. The Cypriot Central Bank has already given the bank's interim board the go-signal to do a study that will look into the matter. The restructuring scheme is expected to be in place by September of this year. New shareholders of the bank will be responsible for implementing the restructuring scheme.
Political parties, however, are not comfortable with the bank's plan. They are especially worried about the possibility that properties which are held against loans which are not performing could be auctioned off by the asset management division. The bank has assured that "its survey would not be considering the transfer of private household mortgages to the asset management company," according to a Reuters report.
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