JSC Bank of Latvia Opens in Cyprus

JSC LTB Bank of Latvia is to open a branch in Cyprus, said the bank.

"JSC LTB Bank of Latvia, member state of the European Union, has exercised its right of the freedom of establishment, and shall provide services in Cyprus," the bank's management said in a statement.

JSC LTB Bank has operated in Latvia since 1991 and is a 100% subsidiary of MDM Bank, which is one of the largest privately owned banks of Russia. Primary responsibility for the Cyprus branch's prudential supervision will lie with the Financial and Capital Market Commission of Latvia, said the statement.

"Nevertheless, the Central Bank of Cyprus shall be responsible, in cooperation with the above Authority, for the supervision of the liquidity of the said branch  Moreover, the Central Bank of Cyprus may, for statistical purposes require JSC LTB Bank to submit periodically reports on its activities in Cyprus," said JSC.

JSC decided to establish a branch on the island because of its international recognition as a reputable European financial centre, it said.

At present, 35 foreign credit institutions operate in Cyprus, either in the form of a subsidiary bank or a branch, from 14 different countries (Austria, Bulgaria, France, Greece, the United Kingdom, Jordan, Ireland, Latvia, Lebanon, Ukraine, Romania, Russia, Tanzania, and Jersey).