The Central Bank of Cyprus decided to intervene in the relations between the banks and the auditors via a directive regulating the information that the audit firms ought to submit to the regulatory authority for the economic robustness of the banks. In the directive released in November, the CB specified former provisions of the banking law, asking by the bank auditors to inform it on anything that might affect the depositors’ interests. The main aim is to "create a constructive communicative relation with the auditors so as to promote the offer of information to the CB, which will facilitate its supervisory activity”.

The new directive aims to determine the frameworks of the trilateral meetings of the CB with the banks and the auditors as well as the confidential, bilateral meetings of the supervisory authority with the auditors in the absence of the banks. It also describes the cases that the auditors must inform the CB on the possible violations of their customers.

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