The Central Bank of Cyprus (CBC) is embarking on an ambitious transformation based on its 2025-2026 Strategy, aimed at addressing new challenges and enhancing European integration.

According to the CBC's newly published strategy, the goal is to create a more agile, modern, and sustainable bank that can respond effectively to economic, technological, and environmental challenges. With 76 strategic actions, the CBC seeks to support the long-term growth and stability of the Cypriot economy.

In his introduction, CBC Governor Christodoulos Patsalides explains that the rapidly changing economic, social, technological, and geopolitical environment, along with climate change, has prompted the European Central Bank (ECB) to develop new policies and initiatives to adequately and effectively meet these challenges.

"Our bank must transform quickly to meet the demands of the times for the benefit of the Cypriot economy and the European family," he notes.

To this end, the 2025-2026 Strategy follows a comprehensive and proactive approach. It defines the vision, mission, strategic objective, and key actions needed to fulfill the mission of the bank, not only for the present and future but also within the broader European context.

The Governor also mentions that the strategy aims to make the best possible use of human resources and serves as a tool to enhance collaboration and transparency.

"The 2025-2026 Strategy aims for continuous evolution to address the CBC's weaknesses, ensure adequate response to its responsibilities, and modernize the bank into a contemporary and flexible institution capable of tackling current and future challenges," he says.

The goal, as the Governor states, "is to raise the bar in terms of our role and to become a model organization of service and excellence."

The strategic direction set by the CBC is structured around three pillars.

The first pillar, aimed at improving the CBC ("fix the bank"), involves reorganizing the bank based on a modern organizational structure that enables a comprehensive, swift, and effective response to its mission. It also includes strengthening risk management and regulatory compliance, enhancing internal control, and updating business continuity and recovery plans. Additionally, it entails updating policies, methodologies, and procedures for an effective internal control system.

The bank also aims to identify weaknesses and deviations from best practices through human resource mapping and to develop appropriate strategies to address these issues effectively. Similar mapping efforts in the IT sector will identify gaps and define a strategy to support the CBC's objectives.

The first pillar also envisions a communication strategy, renovation, enhancement, and energy upgrades for building facilities, and preparations for recognizing and promoting the bank's Coin Collection.

The second pillar focuses on the operation of the bank ("run the bank"). This includes developing a supervisory strategy for each sector of responsibility to ensure a targeted, methodical, and consistent approach for effective response to the CBC's responsibilities. The strategy also covers staffing, addressing climate change, green transition, and environmental education, establishing a procurement unit, and meeting obligations under the Cypriot presidency of the EU Council.

The third pillar centers on change ("change the bank"). This involves modernizing the governance model, implementing a human resource strategy to encourage and promote excellence, executing an IT strategy to make the CBC more efficient, flexible, and innovative, and establishing a Research and Policy Production Center. It also aims to increase the CBC's contribution and influence in its areas of responsibility and enhance social, environmental responsibility, and public service.

The strategic plan includes 76 specific actions, each with a designated Project Manager and a set implementation timeline. Each Project Manager is responsible for preparing an Action Plan detailing the specific steps needed to achieve each action within the predetermined timeframe.

The progress of the Action Plans will be monitored by the Coordination Team through a Progress Table submitted monthly by each Project Manager.

The implementation of some actions has already begun, with 33 actions scheduled for completion by the end of 2024. By the first half of 2025, 20 more actions are expected to be completed, with an additional 3 actions finalized by the end of 2025. The remaining 20 actions are set to begin in 2025 and will require a longer period for implementation.