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Cyprus overbanking refers to the phenomenon where the banking sector in Cyprus has grown disproportionately large compared to the country's economy. This resulted in a high ratio of bank assets to GDP, leading to vulnerabilities such as excessive risk-taking and exposure to external shocks. The situation was exacerbated during the financial crisis, culminating in the 2012-2013 banking crisis, which prompted significant reforms and restructuring within the banking system. Overall, overbanking has raised concerns about financial stability and sustainability in Cyprus.

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AnswerBot

∙ 1y ago

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