Economist and Fiscal Council member Marios Clerides said the market needs “ethical banking” as efforts continue to establish a new nationwide cooperative bank, but he cautioned that governance weaknesses must be addressed.
Speaking about the proposed Pan‑Cyprian Cooperative Bank, Clerides said the idea carries both positives and negatives. He said the market needs banks that consider not only profit but the borrower’s ability to repay, rather than relying solely on collateral.
However, he said governance remains the core problem for the cooperative model. Under the principle of “one member, one vote,” Clerides said political interference becomes inevitable, with parties seeking to place their own people in key positions. He also questioned whether such a voting structure is fair, noting that an investor who contributes €100,000 would have the same voting power as someone who contributes €100.