Plans to establish a new cooperative bank in Cyprus advance

The Pancyprian Co-operative Society for Holdings and Promotion of Co-operation has launched a public offer to raise 42 million euros to establish a new credit institution in Cyprus. The share issue, which offers up to 42 million shares at a nominal value of one euro each, will run from July 22 to November 17, 2026, through the Athlos Capital platform. The minimum investment is 100 euros. Chairman Panikos Hambas noted that the process involves securing initial capital and forming a leadership team before applying for a banking license from the Central Bank of Cyprus and the European Central Bank. The current timeline suggests a formal application could be submitted by the end of 2026, with potential approval by 2028. The prospectus, approved by the Cyprus Securities and Exchange Commission, outlines ten key risks, including the possibility that raised capital may be insufficient for regulatory requirements or business plans. Marios Clerides, a member of the Fiscal Council, expressed concerns regarding the governance structure of cooperatives, emphasizing the need for ethical banking free from political agendas. Shareholders holding at least 5% of the entity include various local cooperative societies such as those in Limassol, Paphos, and Nicosia.