Cooperative Superintendent, Constantinos Lyras expressed disagreement with any change of the existing regulatory framework of the cooperative movement.

In his statements to StockWatch, Mr. Lyras stressed that they have already expressed their disagreement in writing to Central Bank Governor, Panikos Demetriades.

As StockWatch reported earlier, the Central Bank is preparing a proposal for the change of the regulatory framework of the Coops on the basis of the Dutch Rabobank model.

“The existing framework is appropriate and should not be touched”, he clearly stated.

He said that the cooperative movement did not contribute to the financial crisis but amid the financial crisis it contributed to the stability of the system.

“We don’t want the cooperative to pay because there is a confidence crisis in the banking sector”, he emphasized.

Mr. Lyras expressed the movement’s readiness to discuss some changes, which, however, will not touch the existing structure.

“We are willing to discuss any improvements in the supervision of the banking system on a Cypriot and European level without affecting the existing structure since this would create economic and social impacts”.

The CB proposal provides for the conversion of the Cooperative Central Bank in the primary body for the 96 coop banks and savings banks and the transfer of activities for this purpose from the Coop Development and Supervision Service to the Cooperative Central Bank.

The CCB will have two levels of governance, as Rabobank has. The steering committee will handle the daily administration of the CCB and the Supervisory Board will undertake the overall monitoring and the primary supervision of the coop society.

The Supervisory Board will be composed of independent directors and will have a direct involvement of the Central Bank.

The secondary supervision will be held by the Central Bank, which will be able to intervene directly to the Coops.