Licensing & Supervision
The Deposit Protection and Resolution of Credit and Other Institutions Scheme (DP & RCOIS) was established and operates since March 2013. The relevant legal framework is Article 34 of the Banking Law of 1997 to 2013, the Law on the Establishment and Operation of Deposit Protection and Resolution of Credit and Other Institutions Scheme of 2013 and the Operation of the Deposit Protection and Resolution of Credit and Other Institutions Scheme Regulations of 2013.
The Scheme constitutes a separate legal entity. For the purposes of the Scheme, including the administration of the two funds, i.e. the Deposit Protection Fund (DPF) and the Resolution of Credit and Other Institutions Fund, a Committee is established consisting of representatives from the Ministry of Finance and the Central Bank of Cyprus.
The purpose of the DP & RCOIS is the payment through the DPF in order to compensate the depositors of covered institutions which pay contributions to the DPF, in the event that a covered institution is unable to repay its deposits and also to fund the implementation of resolution measures. The DPS covers deposits denominated in all currencies.
Participation in the DP & RCOIS is compulsory for all banks with authorisation to operate by the Central Bank of Cyprus.
Excluded from the DP & RCOIS are the Cooperative Central Bank Ltd and the Cooperative Credit Institutions. These institutions are covered by a separate scheme established under the Cooperative Societies (Establishment and Operation of the Deposit Protection Scheme) Rules of 2000 to 2009. The maximum compensation is €100.000 per depositor, per institution. For more information interested parties may visit:
The compensation payment of the DPF is activated in the event a decision is reached that a member bank is unable to repay its depositors. In this case the relevant decision is adopted either by the Central Bank of Cyprus or through an order issued by a Court of the Republic or by the judicial authority of the country where the member is established, for special liquidation of the covered or affected institution.
The maximum level of compensation, per depositor, per bank, is €100.000 including accrued interest. This limit applies to the aggregate deposits held with a particular bank. When calculating the amount of compensation payable to a depositor, any loans or other credit facilities granted by the depositor’s bank are set-off against the deposits. Any counterclaims that the bank concerned may have against the depositor in respect of which a right of set-off exists, can also be set-off.
Excluded from coverage are certain categories of deposits such as bank deposits (interbank), deposits by credit institutions, deposits by provident and pension funds, insurance companies, government departments, semi-government organisations and local authorities, and deposits by collective investment schemes. Furthermore, among the categories excluded from coverage are deposits by persons against which criminal proceedings have been instigated or for which a confiscation order has been made, under the Prevention and Suppression of Money Laundering Activities Law or of a corresponding law of another country and deposits belonging to a person who, in the opinion of the Management Committee, are responsible for the bank’s bankruptcy or have profited out of circumstances which led to the bank’s bankruptcy or any other similar situation so as to be unable to repay its depositors. For these categories of deposits no compensation is paid. The Management Committee may exempt any other categories of deposits if, in its opinion, particular circumstances render such decision necessary.
In case where the compensation payment of the DPF is activated, an announcement is made in the Official Gazette of the Republic of Cyprus and in the local press stating the inability of the covered institution to repay its depositors. In the announcement the manner in which claims could be submitted and the necessary documentary evidence that accompany each claim are also included.