Breaking news

Cyprus Banks Advance Restructuring With Mergers And Tighter Oversight

Strategic Mergers Signal A New Era

Central Bank Governor Christodoulos Patsalidis said recent bank acquisitions mark a step toward restructuring the Cypriot banking sector. In the December Financial Bulletin, he referred to Eurobank’s acquisition of Greek Bank and Alpha Bank’s acquisition of AstroBank as moves that could strengthen institutional credibility and support the country’s economic outlook.

Institutional Investment And Enhanced Governance

The entry of international institutional investors is expected to support long-term value creation and improvements in corporate governance. These investors operate under the European Central Bank’s supervisory framework through the Single Supervisory Mechanism, which is intended to strengthen oversight and stability in the sector. Officials say this environment could also enable the rollout of new banking products and services.

Optimized Corporate Structures And Profit Deployment

Governor Patsalidis further emphasized that adherence to European regulatory standards, combined with economies of scale, technology transfer, and enhanced corporate structuring, creates an ideal environment for the delivery of superior financial products. On the matter of bank profitability, and amidst debates over the taxation of excessive earnings raised by proposals from AKEL and ELAM in November 2025, he maintained that bank profits must be deployed prudently. By reinvesting gains, banks can strengthen their resilience, competitiveness, and capital base over the long term.

Robust Performance And Financial Resilience

Despite a modest decline in profitability due to lower benchmark interest rates, the sector remains robust. Reported net earnings reached approximately €715 million through September 2025. Notably, the Return on Equity (RoE) stood at an impressive 16.0%, considerably above the European Union average of 10.7%. Similarly, the cost-to-income ratio improved to 42% as of September 2025 compared to a European average of 52%, reflecting efficient operational management.

Solid Deposit Growth And Economic Support

The banking system continues to provide liquidity to the real economy while recording steady deposit growth. The increase is largely attributed to stronger business earnings, rising household disposable income and a stable labor market. Non-financial enterprises played a significant role, with annual deposit growth reaching 15.3% in October 2025, up from 11.4% a year earlier, the highest rate since 2018.

Conclusion

The combination of institutional investment, tighter supervision and corporate restructuring is expected to support the sector’s competitiveness and long-term stability. Analysts say these trends may strengthen confidence among market participants and reinforce the broader financial system.

Cyberattacks On Governments, Infrastructure And Businesses Shape 2026

Cybersecurity has become an increasingly prominent issue in 2026 as cyber incidents continue to affect governments, businesses and critical infrastructure worldwide. Recent attacks have targeted sectors ranging from healthcare and education to energy and public administration, highlighting the growing impact of cyber threats on economic activity and national security.

Questions Remain Over DOGE’s Access To Social Security Data

More than a year after individuals linked to the Elon Musk-led Department of Government Efficiency (DOGE) gained access to systems at the Social Security Administration, questions remain about how sensitive data was handled. Court proceedings are ongoing following allegations that a copy of the Social Security database was transferred to an external server, potentially exposing personal information belonging to millions of Americans.

According to legal filings, the Social Security Administration has acknowledged uncertainty regarding the contents of the server. Lawmakers have warned that, if confirmed, the incident could rank among the largest data breaches involving government records in U.S. history.

Hackers Increasingly Target Water Systems And Energy Grids

Cyberattacks targeting critical infrastructure have continued across Europe, including incidents affecting energy networks and water systems. Authorities in Poland, Sweden and Norway have reported attacks linked to groups believed to be acting in support of Russian interests. At the same time, tensions in the Middle East have heightened concerns about cyber threats to critical infrastructure, particularly privately operated utilities with limited cybersecurity resources.

Iranian Government Hackers Target Stryker

In March, Iranian hackers reportedly carried out a cyberattack against medical technology company Stryker, wiping thousands of employee devices. The incident, attributed to a group linked to Iranian intelligence, disrupted operations and affected the company’s first-quarter financial performance.

Instructure Among Shinyhunters’ Disruptive Hacking Campaigns

The hacking group ShinyHunters has continued to rely on voice phishing techniques to gain access to corporate networks. One of the most prominent incidents involved education technology company Instructure, whose Canvas learning management platform was breached.

The attack exposed personal information belonging to more than 30 million users and disrupted academic schedules during examination periods. Other reported victims include Charter, Carnival and organisations operating in the finance and public sectors.

Supply Chain Attacks Continue To Target Technology Companies

Software supply chains have remained a major target for cybercriminals. Security researchers have linked a series of attacks to compromises involving tools and platforms used by software developers, including Aqua Security’s Trivy, Bitwarden and Checkmarx. Such incidents can have wider consequences across the technology industry because compromised software updates may provide attackers with access to credentials and internal systems.

FBI Reports Major Cyber Incident

The Federal Bureau of Investigation was compelled to declare a “major cyber incident” in April after one of its surveillance systems was breached by actors believed to be linked to Chinese intelligence. This breach, which reportedly exposed the phone numbers of individuals under surveillance, has raised serious concerns about national security and the integrity of federal surveillance operations.

Hasbro Faces Operational Disruptions Following Cyberattack

Toy manufacturer Hasbro experienced weeks of operational disruption after detecting a cyberattack in late March. The company reported website outages and other operational challenges before confirming in May that the attackers had been removed from affected systems. Regulatory filing delays and other business impacts are expected to continue in the near term.

Millions Of Identity Documents Exposed

Several data exposure incidents reported during the year affected systems used for identity verification and customer onboarding. Cases involving a hotel check-in platform, a money transfer service, a prison communications provider and a UK visa portal exposed passports, driver’s licences and other identification documents belonging to more than two million people. The incidents have raised concerns about the security of personal information collected as part of identity verification requirements.

Growing Focus On Cybersecurity

The incidents reported throughout 2026 demonstrate the increasing impact of cyber threats across both public and private sectors. As organisations continue investing in digital infrastructure and artificial intelligence, cybersecurity remains a central concern for governments, businesses and critical service providers.

Aretilaw firm
The Future Forbes Realty Global Properties
eCredo
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter