articles | 22 January 2014

Cyprus sees biggest decline in financial institutions in EU in 2013

Cyprus had the biggest decline in the number of monetary financial institutions (MFI) in the eurozone, says the European Central Bank (ECB).

According to ECB figures, on January 1, 2014 there were 6,790 MFIs in the euro area, compared with 7,059 on January 1, 2013. In relative terms, the decrease was particularly pronounced in Cyprus (-26%), Greece (-17%), Luxembourg (-16%), Spain (-9%), Malta (-9%) and France (-7%). In absolute terms, Luxembourg (-70), France (-76), Spain and Cyprus (-36) were the main contributors to the net decrease of 269 units in the euro area, the ECB said.

Since 2011 a substantial decrease in the number of money market funds (an MFI sub-sector) has been recorded in the euro area (-658 over three years), partly on account of their new statistical definition, which has been adjusted towards supervisory standards. In addition, the contraction in this sub-sector continued during 2013, most prominently in Luxembourg (-77) and France (-65).

Despite the enlargement of the euro area with the accession of Greece (2001), Slovenia (2007), Cyprus and Malta (both 2008), Slovakia (2009), Estonia (2011) and Latvia (2013), the number of MFIs in the euro area has decreased by 31% – or 3,066 institutions – since January 1, 1999. On 1 January 2014 Germany and France accounted for 42% of all euro area MFIs, approximately the same share as recorded on 1 January 2013.

Source: Cyprus Mail

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