Cyprus banking sector undergoes decade of restructuring

Data from the European Central Bank reveals significant changes in the Cypriot banking sector between 2015 and 2025. Over the past decade, 370 bank branches were closed, contributing to a total of 657 closures since 2012 following the collapse of institutions like Laiki Bank and Cooperative Credit Institutions. The workforce decreased by 4,634 employees in the last ten years, with total departures reaching 6,504 since 2012, primarily through voluntary exit schemes and retirement. In 2025, the number of banking staff dropped by 259 individuals, falling from 6,608 in 2024 to 6,349. Conversely, the number of branches remained stable at 193 throughout 2025. Bank of Cyprus implemented small-scale voluntary exit programs in 2025, impacting approximately 110 employees, with an additional plan for 40 staff announced in June. These trends are attributed to the digitization of transactions and heavy investment in technological upgrades, shifting banking from physical branches to e-banking and ATM services.