Nicosia, Cyprus. Cyprus has tabled four banking reform bills in parliament, seven months after the European Union deadline for incorporating the bloc’s updated banking directive into national law. The legislation is expected to be discussed in September after parliament began its summer recess.
Delayed submission
The government submitted the legislative package at the beginning of July and urged parliament to examine it as a priority, according to Philenews.
EU member states were required to transpose the directive into domestic law by January 11, 2026. Cyprus submitted the bills to parliament at the beginning of July 2026.
EU infringement process
The delay prompted the European Commission to launch formal infringement proceedings against Cyprus earlier this year.
Cypriot authorities received a letter of formal notice from the Commission on March 27, 2026, the first formal step in the EU infringement process over the missed transposition deadline.
The Finance Ministry said the Commission has adopted a stricter approach towards member states that fail to meet legislative deadlines for implementing EU directives.
The ministry also said that even where a member state completes transposition after proceedings begin, the European Union may not withdraw a case already referred to the Court of Justice of the European Union over a failure to implement a directive on time.
Scope of the reforms
The four bills are intended to align Cyprus with the EU’s revised banking regulatory framework. They cover supervisory powers, sanctions, branches of third-country banks, and environmental, social and governance risks.
