Nicosia, Cyprus. Geopolitical challenges and sectoral change will determine the leading players in the new era of banking, according to Eurobank. The bank made the remarks at the ICPAC Mediterranean Finance Summit 2026, which it supported.
Cyprus economic outlook
Eurobank Deputy Chief Executive Officer Haris Hambakis said Cyprus started the year on solid economic footing, supported by renewed market trust in state finances and a highly stable banking system.
He said maintaining that trajectory is not guaranteed and will increasingly depend on productivity gains, targeted investments, consistent policymaking and the effective management of geopolitical and climate-related risks.
“Cyprus enters 2026 with strong macroeconomic foundations, restored fiscal credibility and a resilient banking sector,” he said.
Banking sector changes
Hambakis said the evolving global environment, including changes in trade and financing costs, is affecting short-term economic performance and reshaping the operating model of banks.
Eurobank said the sector is moving toward a more customer-centric and data-driven model, where flexibility, rapid response and technology are becoming key differentiating factors.
“To respond to new conditions, banks must evolve into simpler and more flexible organisations, accelerating their digital transformation,” the bank said in a statement.
It said the transformation includes modernising core infrastructure, strengthening digital service channels and using data and automation to improve efficiency and decision-making quality.
