Nicosia, Cyprus. Cyprus’ House commerce committee has closed discussion on two legislative proposals to expand access to basic payment accounts, with the bills expected to go to parliament’s plenary despite objections from state bodies and banks.
Committee concludes three-year review
The committee on Thursday ended its examination of two proposals tabled by MPs Costas Costas, Giannakis Gavriel and Andreas Pasiourtidis after reviewing them for roughly three years.
What the proposals would change
The first proposal would bring very small businesses under the framework governing basic payment accounts and introduce rules on the transparency and comparability of related bank charges.
The second proposal would prevent banks from refusing a consumer’s application for a basic payment account solely because the person already holds such an account at another credit institution.
Origins and legislative path
Addressing the committee, Costas said the effort to extend the definition of “consumer” to include very small businesses dates back to 2020, during parliamentary consideration of amendments linked to the transposition of a European directive.
He said the move was postponed after the commerce minister at the time warned that Cyprus was facing legal action at European level over delays in bringing the directive into domestic law. Costas said lawmakers were later told the issue would be handled through a government bill, but no such legislation has been submitted.
Objections from state bodies
The proposals have faced resistance from several state bodies. Representing the finance ministry, Avgi Chrysostomou-Lapathiotis said the changes would place broader obligations on banks in areas already covered by more specialised legislation, much of it tied to EU harmonisation.
She also cited concerns raised in a note submitted to the committee in January 2025, including whether extending the definition of consumer in this way is compatible with the underlying European directive.
Do you think very small businesses should be included in the definition of “consumer” for basic payment accounts?
