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EBA Sounds Alarm On Geopolitical Risks Facing European Banks

by THEFUTURE.TEAM

July 24, 2024

The European Banking Authority (EBA) has raised significant concerns regarding the heightened geopolitical risks currently affecting European banks. In its latest Risk Assessment Report, the EBA underscores the myriad of challenges banks are grappling with, including uncertain economic growth prospects, volatile interest rates, and an increase in geopolitical tensions. These factors are contributing to a complex and unstable financial environment.

A key concern highlighted in the report is the rise in non-performing loans (NPLs). Despite this, many banks are planning to expand their lending exposures and increase their long-term market-based financing. This approach signals a strategic move to maintain competitiveness and market share, even amidst growing financial uncertainties. However, this strategy is not without its risks, as increased lending can exacerbate the issue of NPLs if economic conditions deteriorate further.

Moreover, the EBA has identified a surge in cyber risks and operational threats. As digital transformation accelerates within the banking sector, vulnerabilities to cyber-attacks and operational disruptions have become more pronounced. The EBA’s report calls for enhanced cybersecurity measures and robust operational risk management frameworks to mitigate these threats.

The geopolitical landscape, marked by ongoing conflicts and trade tensions, adds another layer of complexity to the banking sector’s risk profile. These geopolitical risks have far-reaching implications, potentially affecting everything from cross-border transactions to regulatory environments.

In response to these multifaceted risks, the EBA recommends that banks adopt a more vigilant and strategic approach. This includes strengthening their risk management practices, enhancing their cybersecurity infrastructure, and being more cautious in their lending practices. By doing so, banks can better navigate the uncertainties and safeguard their financial stability.

The EBA’s report serves as a critical reminder for banks to remain agile and responsive to the rapidly changing risk landscape. As geopolitical and economic uncertainties continue to evolve, the ability of banks to adapt and implement robust risk mitigation strategies will be pivotal in ensuring their resilience and long-term viability.

New Decrees For Blue Card And Foreign Students: Key Changes And Implications

by THEFUTURE.TEAM

December 20, 2024

The Ministry of Labor and Social Insurance has announced a series of new measures aimed at addressing the increasing demands of Cyprus’ labor market. These initiatives are designed to attract highly skilled professionals from third countries and broaden employment opportunities for foreign students in select fields, as outlined in the recent Decrees published in the Official Gazette of the Republic.

Attracting Skilled Professionals

One of the key updates is the introduction of a minimum annual salary for foreign professionals, which has been set at €43,632, 1.5 times the average gross annual salary in Cyprus. This salary threshold applies to individuals coming to work in sectors such as Information and Communication Technologies (ICT), pharmaceuticals for research purposes, and maritime industries (excluding skippers and crew).

Expanded Employment Options For Foreign Students

The new regulations also provide an update on the employment rights of foreign students. From December 2024, students from third countries will be able to work in Cyprus, with the new rules replacing the previous March 2024 start date.

Students studying ICT who have completed their first academic semester will be eligible to work in occupations related to their field of study, thereby gaining practical experience while pursuing their education.

In response to critical sector shortages, the regulations also clarify the specific occupations and salaries that Blue Card holders—third-country nationals—will be eligible for in Cyprus. The Blue Card, in line with the European Directive, allows highly skilled professionals to live and work in EU member states.

Strengthening The Labor Market and Economy

These updates are expected to bolster the supply of specialized workers in key sectors, addressing existing gaps and promoting the continued growth of Cyprus’ economy. At the same time, the new measures offer foreign students enhanced opportunities for professional development, facilitating their seamless integration into the country’s workforce.