The standard of banking services in Cyprus compares well with European countries and the United States. Bank financial statements are in compliance with international standards and audited by internationally-recognized auditors. Currently, loans to the government and semi-government sector make up 54.0 percent of the banking system's total assets. The new Banking Law of 1997 provided for a properly funded deposit insurance scheme. Currently, there are six active domestic banks in Cyprus offering all types of services, including deposit accounts, lending advances, leasing, credit card facilities, automatic banking machines, etc., while some of them have subsidiaries dealing with insurance services, investment banking, and other related services.
All domestic banks have correspondent arrangements with U.S. banks.
Cyprus banks have received very high ratings from international rating agencies. Current regulations for exchange control do not affect or hinder international trade. The Central Bank actively encourages cross border financing activity and grants permission freely to businessmen to meet their international obligations. In general, there is no problem with credit availability. However, the Central Bank has already started liberalizing the financial system and will proceed with full liberalization in the near future, allowing locals to borrow from abroad as well.