Strengthening Corporate Governance is being promoted as a priority at the Central Bank of Cyprus, in line with the rules and procedures of the Eurosystem.

The new Governor of the Central Bank has made it his top priority to implement a system of rules and procedures that will allow for controlled and effective management of the organization. This system aims to create a reliable framework for fulfilling the Bank's duties, based on the principles of transparency, consistency, and equal treatment.

As part of the strategic plan for 2025–2026, Corporate Governance will focus on and align with the Central Bank’s role and mission, both as an independent entity and as a member of the European System of Central Banks and the Single Supervisory Mechanism.

According to banking sources, the Governor’s initiative, launched from his first days in office, involves implementing international best practices in corporate governance and fulfilling the Bank’s statutory obligations as a member of the Eurosystem.

1. Decision-Making Structure: The administrative structure ensures decisions are made transparently, independently, and consistently.

2. Organizational Structure: Responsibilities are clearly defined through a separation of duties.

3. Internal Control Framework: A robust internal control system will enable the Bank to carry out its duties effectively and fulfill its purpose reliably.

The initiative aims to align with Eurosystem standards, emphasizing the Bank’s decision-making bodies: the Governor, the Deputy Governors, the General Council, and the General Assembly of Shareholders. 

The internal control framework includes the Audit Committee, the Internal Audit Directorate, the Risk Management Directorate, and the Regulatory Compliance Unit.

An area of particular focus for the Governor is the application of the Code of Conduct, in line with the European Central Bank’s Guidelines. This code mandates equal treatment and the avoidance of discrimination.

The Central Bank, along with the European Central Bank and 25 other European national central banks and supervisory authorities, has signed the Charter of the European System of Central Banks and the Single Supervisory Mechanism. This Charter ensures equality and diversity, principles that banks must uphold in the workplace.

Dr. Christodoulos Patsalides places great emphasis on the Internal Control System and aims to enhance the Bank’s audit mechanisms and procedures to ensure its operations are effective and secure.

The Internal Control System will improve the consistent execution of the Bank’s duties, the identification and management of risks, the reliability of data and information required for the accurate and timely assessment of its financial position, compliance with regulatory frameworks, internal regulations, and codes of conduct, and the efficient operation of IT systems supporting the Bank’s functions.

The Bank’s Operational Units serve as the first line of defense, handling internal control systems. The second line includes regulatory compliance and oversight, ensuring the Internal Control System's efficiency. Internal Audit operates independently as the third line of defense within the Bank’s governance framework.