Cyprus Popular Bank

Cyprus Popular Bank Public Co. Ltd
Company typePublicly traded limited company
CSE: CPB
IndustryFinancial services
Founded1901
Defunct2013
Headquarters
Nicosia
,
Cyprus
Area served
Greece, Romania, Serbia, Russia, Ukraine, Malta
ProductsBanking, insurance, investment management
SubsidiariesMarfin Bank Romania,
Marfin Bank Serbia,
Rosprombank Russia,
Marfin Bank Ukraine,
Lombard Bank Malta
Websitewww.laiki.com
The Marfin Laiki Bank in Finchley, North London.
Notice placed in the window of a London branch in 2013.
The interior of the Laiki Bank, Finchley, filled with boxes and cabinets after closure.

Cyprus Popular Bank (from 2006 to 2011 known as Marfin Popular Bank (MPB)) was the second-largest banking group in Cyprus behind the Bank of Cyprus until it was 'shuttered' in March 2013 and split into two parts. The 'good' Cypriot part was merged into the Bank of Cyprus (including insured deposits under 100,000 Euro) and the 'bad' part or legacy entity holds all the overseas operations as well as uninsured deposits above 100,000 Euro, old shares and bonds. The uninsured depositors were subject to a bail-in and became the new shareholders of the legacy entity. As at May 2017, the legacy entity is one of the largest shareholders of Bank of Cyprus with 4.8% but does not hold a board seat. All the overseas operations, of the now defunct Cyprus Popular Bank, are also held by the legacy entity, until they are sold by the Special Administrator, at first Ms Andri Antoniadou, who ran the legacy entity for two years, from March 2013 until 3 March 2015. She tendered her resignation due to disagreements, with the Governor of the Central Bank of Cyprus and the Central Bank Board members, who amended the lawyers of the legacy entity, without consulting her. Veteran banker Chris Pavlou who is an expert in Treasury and risk management took over as Special Administrator of the legacy entity in April 2015 until December 2016. The legacy entity is pursuing legal action against former major shareholder Marfin Investment Group.

Its shares were listed on the Cyprus Stock Exchange and the Athens Stock Exchange. CPB had a network of more than 295 branches in Cyprus, Russia, Ukraine, Romania, Serbia, the UK and Malta. The bank had applied to open a representative office in Beijing, People's Republic of China.[1]

Trading on the island as Laiki Bank (Laiki being the Greek word for Popular), as of September 2012 it held a 16% share of the market in loans and a 14.4% share of deposits. The Bank made a series of large loans, many to Greek companies prior to and during their financial crisis. What followed has been described as "billions handed out in bad loans created a financial time-bomb".[2] After the bank collapsed, it was rescued by the Cypriot government, which took 84% ownership on 30 June 2012 and as of March 2013 it is being dismantled as part of the 2012–2013 Cypriot financial crisis.[3]

  1. ^ "www.cse.com.cy". Archived from the original on 2012-06-26.
  2. ^ "The Report: Cypriot Banks". BBC Radio 4 The Report. 2013.
  3. ^ "Laiki Financial Report I/2012" (PDF). Laiki. 2012. p. 2. Archived from the original (PDF) on 2013-05-12. Retrieved 2013-03-20.