How We Regulate
The CMA takes a risk-based approach to the supervision of financial institutions. This approach has three main objectives:
Effective and responsible execution of regulatory duties
Allocation of resources to the most pertinent risks
Adherence to international best practices and standards
Supervisory Tools
The CMA uses a range of supervisory tools including:
Financial institutions are categorized into risk impact groups based on their size, complexity, and systemic importance. This helps the CMA prioritize supervisory resources.
Sectoral Supervision
Banking, Trust, Corporate Services & Investment (BTCSI)
The BTCSI supervisory programme follows a six-step approach to ensure comprehensive oversight of these sectors.
Insurance
The insurance supervisory framework uses a flexible nine-phase plan that includes ongoing monitoring, risk-focused on-site inspections, and capital adequacy assessments using the Cyprus Solvency Capital Requirement (CSCR) model.