Christian Banking Crisis
CY
-------------------------------------------------
[Заголовок документа]
-------------------------------------------------
CSR essay
Kozhevnikova E., Sadokhina A., Yatisyshina P.
Аннотация
[Введите аннотацию к документу. Аннотация обычно представляет собой краткий обзор содержимого документа.]
Оглавление The problem 2 Time-line 2 Reasons of crisis in Cypriot banking sector: 4 Moral Dilemmas 4
The problem
The current crisis of banking system in Cyprus had raised difficult moral dilemmas for Cypriot government, members of Euro Union and other affiliated governments. Cypriot banks became unable to secure the deposits due to several reasons: the Greek crisis, crisis in real estate sector. It provided relatively high income on deposits, which is always associated with risky investments. The macroeconomic situation in the world only worsened the situation. To sum up, the some of the banks …show more content…
In this case the costs of bank mistakes lay down on clients with deposits over 100 000 Euros. By the way, most of such clients are Russian (Russian investments in Cypriot bank sector are estimated 26 bn Euro, they exceed Cypriot GDP which is around 18 bn Euro). Russians were happy to use Cyprus as an offshore – due to double taxation agreement. This was a place where nobody asked where that money came from. At the same time EU and Cyprus were happy to transfer the costs to Russian depositors by expropriating their depsits. Is it ethical? Not the easiest question to
-------------------------------------------------
[Заголовок документа]
-------------------------------------------------
CSR essay
Kozhevnikova E., Sadokhina A., Yatisyshina P.
Аннотация
[Введите аннотацию к документу. Аннотация обычно представляет собой краткий обзор содержимого документа.]
Оглавление The problem 2 Time-line 2 Reasons of crisis in Cypriot banking sector: 4 Moral Dilemmas 4
The problem
The current crisis of banking system in Cyprus had raised difficult moral dilemmas for Cypriot government, members of Euro Union and other affiliated governments. Cypriot banks became unable to secure the deposits due to several reasons: the Greek crisis, crisis in real estate sector. It provided relatively high income on deposits, which is always associated with risky investments. The macroeconomic situation in the world only worsened the situation. To sum up, the some of the banks …show more content…
In this case the costs of bank mistakes lay down on clients with deposits over 100 000 Euros. By the way, most of such clients are Russian (Russian investments in Cypriot bank sector are estimated 26 bn Euro, they exceed Cypriot GDP which is around 18 bn Euro). Russians were happy to use Cyprus as an offshore – due to double taxation agreement. This was a place where nobody asked where that money came from. At the same time EU and Cyprus were happy to transfer the costs to Russian depositors by expropriating their depsits. Is it ethical? Not the easiest question to