Citizens in Cyprus and across Europe continue to prioritise the safety and liquidity of bank deposits, while investments are often seen as complex or suitable only for a limited group, Central Bank Governor Christodoulos Patsalides said at a roundtable discussion on Thursday.
Financial literacy was at the centre of an event organised by the Central Bank of Cyprus on June 18, 2026.
The event was held at a particularly critical time for Europe, as efforts intensify to strengthen the Savings and Investments Union (SIU), aimed at channelling the significant savings of European citizens into productive investments that support growth, innovation and the international competitiveness of the European economy.
In her opening remarks, Lena Kleanthous, head of the Central Bank’s Financial Literacy Service, said the initiative forms part of the bank’s strategy to place citizens at the centre, stressing that effective financial decision-making depends on knowledge, understanding and trust. Financial literacy, she noted, is a key pillar of economic resilience and social cohesion.
A key part of the event was the presentation of findings from a recent targeted survey by the Central Bank, delivered by Pani Karamanou, head of the Directorate General for Financial Stability and Resolution.
The survey examined citizens’ knowledge, attitudes and behaviour regarding financial management, showing that despite the existence of savings, these remain largely concentrated in traditional forms such as bank deposits.
At the same time, an increased sense of insecurity in financial decision-making was recorded, while a significant portion of citizens believe they do not have equal access to savings and investment products compared with other European citizens.
Savings and investments
The roundtable discussion that followed, moderated by University of Cyprus professor Andreas Milidonis and attended by Central Bank governor Christodoulos Patsalides and Bank of Greece governor Yannis Stournaras, focused on the challenges Europe faces in converting savings into investments, as well as the importance of financial education.
Opening the discussion, Milidonis pointed out that the average Cypriot household saves significantly less than the European average, with a large share of savings remaining in low or zero-yield bank accounts. He stressed that policymakers face the challenge of encouraging the channelling of savings into investments that preserve value against inflation, noting that the Savings and Investments Union is an important step in that direction.
Patsalides underlined that the issue is multifaceted and linked to factors such as limited financial knowledge, low confidence in investments, risk perception and behavioural patterns. Available data, he said, show that in Cyprus, as across Europe, citizens continue to prefer the safety and liquidity of deposits, while investment is often viewed as complex or suitable only for a limited group.
Referring to the role of the financial system, he said banks are expected to act as a bridge between savers and investment opportunities. The SIU does not aim to replace them but to complement funding sources and create more options for citizens.
He also emphasised the importance of trust and real access to investment opportunities, noting that participation requires an environment with equal rules, adequate protection and transparency.
Stournaras, for his part, noted that the simultaneous development of strong banks and developed capital markets is associated with higher levels of investment, productivity and economic growth. Europe still lags behind in investments, particularly in innovative and productive activities, compared with economies such as the United States, where these elements function in a complementary and mutually reinforcing way.
He added that the strategic objective of the Savings and Investments Union is to strengthen and deepen capital markets in a way that complements, rather than competes with, the banking sector.
Strengthening initiatives
In discussing future actions, Patsalides referred to strengthening financial literacy initiatives at national level, with particular mention of the upcoming launch of the website of the Cyprus Committee for Financial Literacy and Education, which will serve as a central, reliable source of information for citizens.
The initiatives being implemented, he said, place particular emphasis on linking knowledge with everyday life, supporting vulnerable groups and educating young people from an early age. Specifically regarding young people, he stressed the need for financial literacy to gain a stable and meaningful place in the education system.
