Cyprus financial core links more to the world than to local economy, study finds

Cyprus has emerged as an outlier in euro area financial networks , according to a European Central Bank (ECB) working paper analysing sectoral interconnectedness across member states.

The study, authored by Antonio Sánchez Serrano, found that banks dominate financial systems across most euro area countries , but Cyprus is among four exceptions where other financial institutions and investment funds play a central role .

In Cyprus, these entities are positioned