The Cypriot Banks accession to the Euro Area

Cyprus¿ accession into the Euro Are has been a cornerstone on the modern history of the island. The research project is concentrating on the effect that Cyprus¿ participation in the Euro Area will have on the banking and financial institutions. The research project was concentrated on the level of the interest rates that exist between the different deposit and loan type products in the Cypriot economy and in the Euro Area. Involving case description general analytic strategies, results were produced from the description of the Euro Area and Cypriot economies, the Euro Area MFIs against Cypriot banks and also at the end the Creek banks against the Cypriot banks. It was proved that during this transition period, there exists disequilibrium on the level of the interest rates between the Cypriot banks, the Euro Area MFIs and the Greek banks. It is also proved that these differences on the level of the interest rates are in favour of the Cypriot banks. The research study is a very useful handbook not only for the Cypriot banking sector but for the Cypriot and Euro Area economies.