Monthly Archives: February 2015

Central Bank of Cyprus Reverses FBME Penalty

27 February 2015

On behalf of all associated with FBME Bank, this website give thanks to the Central Bank of Cyprus (CBC) and its Administrator for having stopped the levy of penalty charges on FBME for maintaining higher than the required sums in the CBC. In addition to stopping the penalties, the CBC also reversed charges paid in earlier months. So, well done there.

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Nice Work if You Can Get it!

25 February 2015

Continuing a sequence of magisterial pronouncements, the Administrator of the Central Bank, Dinos Christofides, issued a memo to managers and staff in FBME Bank’s Cyprus branch reminding them of the 8.30 am to 5.00 pm working day at the branch. He also added that any senior staff seeking to go on leave had to put in a request through HR and wait for Mr Christofides to issue his approval.

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First Order Issued by Arbitral Tribunal

21 February 2015

On 20 February 2015, the Arbitral Tribunal at the ICC in Paris issued its first outcome from its deliberations, known as Procedural Order No. 1. The wording of the Order is as follows:

“The Arbitral Tribunal firmly invites the Respondent to refrain from proceeding to the sale or the resolution of FBME Bank and from transferring its funds to the Central Bank of Cyprus before the Arbitral Tribunal has decided on Claimants’ Request for Interim Measure.”

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Cyprus’ Parliament Postpones Hearing

20 February 2015

The hearing at the House of Representatives – the Cyprus Parliament – into actions taken by the Central Bank of Cyprus against FBME, which was scheduled for last Tuesday 17 February, was postponed at the request of the Cyprus Attorney General, Costas Clerides. In acceding to the request, members of the Parliamentary committee due to host the hearing made clear that it would be re-staged at a later date.

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Administrator is Away … Again

18 February 2015

As on a couple of occasions in 2014, the Administrator has left for an unheralded, unexplained break from yesterday 18 February until, we have been led to expect, next Tuesday the 24th. As before, he has appointed no deputy so during these days the Bank’s Cyprus branch can issue no cheques.
Of course, it is quite reasonable that the Administrator gets the chance to put up his feet from time-to-time, we all need that. However, it is much less reasonable that he fails to appoint someone in his place to approve transactions.


Basel Guidelines Offer Central Banks a Better Way

16 February 2015

The Basel Guidelines are a comprehensive manual of recommendations made for central banks to assist them in dealing with those institutions under their supervision that are facing difficulties. These were codified and published in 2002 by the Basel Committee for Banking Supervision and updated in 2014. This article looks at the value of their application.

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Competition Complaint Gets Underway

14 February 2014

Opening arguments have been submitted in the Cyprus Competition Commission’s hearings in regard to the Commission’s complaint against JCC Payments Systems Limited, its shareholders and other banks in regard to the issuing of payment cards and acquiring services. The hearings resume on Monday, 16 February.


Questions in the Cyprus Parliament

12 February 2015

As seen on the Cyprus Parliament’s website today ( ): the House of Representatives has called a meeting to continue its investigation into actions taken by the Central Bank against FBME Bank ‘which may have consequences in the public interest’. The meeting, to be held from 9.20 am on Tuesday 17 February, will be hosted by Parliament’s Ombudsman committee. The actual name of this committee is the Institutions, Merit and Commissioner for Administration (Ombudsman) Committee and its primary responsibility is the oversight of the conduct of public bodies and institutions.

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Can FBME Funds be Misappropriated for Deposit Insurance?

10 February 2015

Rumour has it that the Central Bank of Cyprus intends to misappropriate FBME Bank  funds for premiums related to deposit protection insurance, effectively making the Bank pay twice. This cannot be the intention of the Central Bank, as it knows full well that there is no legal basis for taking such action. But it ought to look at the verbal statements being made by its appointed Administrator, Mr. Dinos Christofides.

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FBME Card Services Pursues Competition Complaint

6 February 2015

Hearings in the complaint pursued by the Cyprus Competition Commission are to commence in the week beginning 9 February and are expected to last into March. This is in regards to the Commission’s findings against JCC Payments Systems Limited, its shareholders and other banks particularly in regard to the issuing of payment cards and running acquiring services. The complaint specifically deals with issues to do with the use of their market position to restrict competition in breach of articles 3 and 6 of the Cyprus Competition Law and articles 101 and 102 of the European Union Treaty.  Continue reading