Officials from the Central Bank of Cyprus (CBC) met with counterparts from the central banks of Lithuania and the Netherlands on Thursday and Friday.
The meeting allowed for the exchange of technical expertise, experiences, and facilitated a discussion on best practices in supervising electronic money and payment institutions.
According to a statement issued by the CBC on Friday, similar meetings are scheduled to follow with technocrats from the Central Bank of Ireland.
Moreover, the CBC said that enhancing the supervision of these institutions remains a key priority.
As part of this effort, the central bank has developed a comprehensive licensing and supervisory strategy for the sector, following an in-depth study conducted by an international firm.
Experts from the firm worked closely with CBC officials to analyse the sector and identify its inherent risks.
“The strategy aims to ensure the prudent and sustainable growth of the sector,” the CBC said.
This includes improving the licensing procedures for institutions applying to enter the market, strengthening the supervision of existing institutions based on a risk-index approach tailored to each entity, and expanding the supervisory tools available.
It also involves adopting best operational practices for the sector.
To implement these goals, the CBC has established a dedicated Directorate for the Supervision of Electronic Money and Payment Institutions.
The new unit has taken over the proactive supervision of the sector.
At present, the Central Bank of Cyprus supervises 30 electronic money institutions and 11 payment institutions, according to the announcement.
