The Banking Sector is About to Experience a Golden Age
During the last few years, the banking sector in Cyprus has faced instabilities, especially because of the financial crisis. However, the banking sector is recovering from the consequences of the financial crisis, which caused anxiety and distress to both investors and financial institutions.
The implementation of monetary policies as well as the quantitative easing have helped the banks to minimise the risk of buying bank shares and consequently to motivate investors to buy them. Although banks’ profitability is in low levels due to the low interest rates, this is expected to be changed and interest rates will move higher in the following years.
To conclude, we can say that taking into account the positive picture of global GDP growth and the high investment potential of the industry, banking sector will get over its shortcomings and it will enjoy a prosperous period going forward.