Cyprus’ planned new cooperative bank has moved a step closer to becoming a reality after the Cyprus Securities and Exchange Commission approved the prospectus for a public offering of up to 42 million new shares.
The shares will be issued by the Pancyprian Cooperative Company for Holdings and the Promotion of Cooperation at a nominal value of €1 each.
Speaking to Politis, company president Panikos Hambas described the approval as “a very important development”, noting that the undertaking had not been easy because of the extensive requirements involved.
Share offering and management
Hambas said the total share issue would amount to €42 million, with investors required to purchase a minimum of 100 shares at €1 each.
Individuals will account for 60% of the offering, while the remaining 40% will be allocated to Cyprus-based companies. According to Hambas, the funds raised will be deposited in a bank account and safeguarded.
The company is also in the process of selecting its board of directors and senior management team. Those appointed will subsequently be assessed by the European Central Bank.
“For perhaps the first time, the cooperative idea will coexist with banking operations that are under the supervision of the ECB,” Hambas said.
The company is expected to provide further information on July 10 regarding CySEC’s decision and the next stages of the project.
The Pancyprian Company for the Promotion of Cooperation was registered with the Registrar of Cooperative Societies on December 10, 2021.
Its first general meeting was held on March 15, 2022, when a 19-member board of directors was elected and Hambas was appointed president.
Focus on households and small businesses
“Our aim is to become a cooperative bank that places people at the centre of its operations,” Hambas said.
He added that the bank would seek to make extensive use of technology to keep its operating costs low.
The planned cooperative bank will focus on providing student, education, medical and housing loans, as well as financing for green development and home renovations.
It also intends to provide funding to the primary sector and small and medium-sized enterprises.
The effort to re-establish cooperative banking in Cyprus has previously been described as particularly challenging because of the demanding capital requirements imposed by European supervisory authorities.
In November 2025, Registrar of Cooperative Societies Kypros Protopapas told the House finance committee that the economy needed a cooperative banking institution and expressed optimism that the initiative could succeed despite the difficulties.
He stressed, however, that the previous cooperative banking model could not be revived under the European Union’s current supervisory framework.
“Today, for every €100 issued as a loan, 15% must come from the institution’s own capital,” Protopapas said.
