A risk mitigation strategy is a way of reducing the potential adverse effects to the organization that could be caused by a crisis or business disruption. The concept of risk management should constitute an inseparable part of to more fully describe and understand the magnitude of the risk. For example, if the local currency strengthens, local manufacturers will face more intense competition from foreign manuf… More seriously, there is abundant evidence from our consultancy assignments that Cypriot banks have been doing everything possible to avoid classifying certain loans, particularly mortgages or property-backed loans, as non-performing. This means that in terms of risk, Cypriot financial institutions are exposed not only to the domestic economy, but also to deposit flight risks and non-performing loans from outside its borders. Many of those failures can be tracked to a few common causes: 1) lack of attention to the identification and assessment of risks, 2) weak leadership commitment to effective risk mitigation and crisis management, 3) no crisis communication plan, and 4) no process to assess, investigate and mitigate a crisis. It will not, however, completely resolve the fundamental risks and structural challenges faced by the Cypriot economy either in its domestic economic operations, or in its role as an international financial centre. The outbreak of the coronavirus has transformed global supply chains. The gross domestic product (GDP) of Cyprus in the market value of all final goods and services produced in Cyprus within a specific calendar year. Risk management can be defined as a decision making process in a way that ensures the highest level of security by reducing the impact of antici-pated factors on the economic entity functioning. Yet these surpluses have been falling steadily, from EUR 614 mln in 2008 to EUR 231 mln in 2012 (forecast), rendering the deficit unsustainable. This very simple analysis of official data points to serious imbalances in the Cypriot banking sector. When one loses control over their finances, they may attempt to regain that control by controlling their spouse through physical violence and other abusive tactics.”. As a result, there is relatively little impact on GDP, beyond the impact of higher employment and higher wages in the banking sector. Risk mitigation, or what measures should be undertaken from the viewpoint of project design and investment management to minimise or avoid the risk in question. And it contains significant implementation risks which will spill over into the general economy and affect future national priorities, including the development of the offshore oil and gas sector. Girls and young women facing severe economic shocks are more likely to take on high-risk work for their economic … The evidence shows that economic risks are especially high in Africa, Iran, South and Another study of American households indicates that intimate partner violence occurs at disproportionate rates among impoverished groups of women. Time is of the essence to get a grip on this new kind of crisis. Karsten Neuhoff . Figure 3: Loans and Deposits in the Cypriot Banking System. Many governments are advising residents to socially distance themselves, wash their hands, and take various other actions to protect against COVID-19. Category 2: Crisis events which result from a failure of management action, process or lack of contingency measures taken to deal with predictable risks. The first section contains generally applicable risk mitigation measures that apply in all phases of air passenger and cargo transport. The main instruments applied to mitigate political risks are: Political risk insurance and guarantees (PRI) These enable investors and lenders to transfer political risks to a third party, in order to mitigate political risks such as expropriation, breach of contract, currency inconvertibility, political … by Lowell Parker ... followed by silence when asked to recite its relative measure of risk. Gender-based violence prevention, risk mitigation and response during COVID-19. This is exactly why the recapitalisation costs of the Cypriot financial sector are so high, as will be discussed in Section 1.3. The country is paying the price of much needed corporate de-leveraging and a government that seems to have dropped the ball on the economy, as it gets mired in damaging political diversions. 19 The sharing economy 22 3. crisis have further reinforced the strong fundamentals supporting a sound financial sector in Malaysia. In the attached report, we identify various other deficiencies in the governance, firm management, risk management, an d internal control programs that contributed to, or were revealed by, the financial and banking crisis of 2008. The main Cypriot domestic banks (primarily BOC and Laiki) expanded rapidly into Greece and other countries in the 2000s. India, for its part, has seen economic growth decline over the last 18 months, with the latest IMF forecast for the country revised down 0.9 per cent to just 5.8 per cent. T he economic impact of the COVID-19 pandemic is nothing like anything the world has seen before. Government expenditure rose from EUR 1.58 bln to EUR 3.61 bln, an increase of 128%. Find a therapist to heal from domestic violence, NFL Losses Are Associated with Increased Domestic Violence, Online Humiliation and the Shame It Brings, 8 Dangerous Myths About Narcissistic Abuse, 5 Facts Everyone Must Know About Domestic Violence, Domestic Sex Trafficking: Hidden in Plain Sight, Why Domestic Violence Victims Don't “Just Leave”, Domestic Violence When You Can't Leave Home. It was highly secure, padlocks on every door, and a security guard at the main entrance. Having a low amount of debt is not enough to keep policies functioning or quell negative investor sentiment. Posted Jun 07, 2018 In 2005, domestic non-financial institutions had EUR 24.9 bln on deposit and EUR 25.0 bln in loans, for net assets of EUR -131 mln. Sovereign riskis the risk that a government cannot repay its debt and default on its payments. Ministry of Finance, Excessive Deficit Procedure Report, 13/09/2012. Definition: Risk mitigation planning is the process of developing options and actions to enhance opportunities and reduce threats to project objectives [1]. In its latest Global Wage Report, the International Labour Organization highlighted that worldwide earnings growth has been decelerating since 2012. Risk mitigation, or what measures should be undertaken from the viewpoint of project design and investment management to minimise or avoid the risk in question. This connection has also been established in other countries. a unique situation, with the current crisis compounding an existing public health emergency declared in April 2016, due to escalating opioid overdoses and related deaths. Table 6 consolidates information from three main sources: Deposits and loans in the Cypriot banking system (excluding the Central Bank of Cyprus) are drawn from the MFS (November 2012); Current GDP from 2005-2011 is drawn from Cystat (data accessed on 2 December 2012); The 2012 GDP forecast is provided by the Ministry of Finance’s Excessive Deficit Procedure Report (13 September 2012). This article outlines risk mitigation strategies and steps companies can take to ensure business continuity in the event of a pandemic. Mitigation and Response in the Humanitarian Context ... understanding on how to achieve improved outcomes for people living in areas affected by the crisis. Sam Fankhauser . Cyprus’ GDP is dominated by a handful of sectors, lead by real estate and construction, which in 2011 accounted for EUR 3.12 bln, or 17% of total GDP, down from 20% of GDP in 2008 at the height of the construction boom. Aspects of Aircraft Leasing and Financing (LAW 2013) – London City Airport, UK - June 27, 2015 What is a risk mitigation strategy? On the whole, successful implementation of this type of risk mitigation cannot happen overnight. Another way of looking at leverage is by calculating net assets, i.e. A key ingredient for this success is its reputation for economic stability and deft financial management despite a number of challenges such as the Turkish occupation and EU accession. By nature of Cyprus’ position as an offshore [3] company and banking centre, Cypriot banks (domestic and foreign) are used by a wide range of corporate clients to “recycle” funds, usually through transfer pricing, dividend movements, inter-company loans, asset purchases or other transactions. Here it has been strongly influenced by the mass of research on vulnerability that has appeared in print since the mid-1970s. One of the main problems in Cyprus is the expansion of such expenditure (and consumption) without a proper regard for public sector productivity. The increase occurred concurrently with the loss of thousands of jobs in the mining and oil industries. These data show that in 2012, total loans by Cypriot financial institutions to Cypriot and non-Cypriot companies, households and the Cypriot government totalled EUR 71.42 bln, or 393% of forecast 2012 GDP. Most of the countries in the lowest group have been affected by conflict of one form or Anne and her children now live safely. economies, within which they can be further broadly grouped into 3 clusters based on Gross Domestic Production. Hazus is used for mitigation and recovery, as well as preparedness and response. Konzeptwerk Neue Ökonomie and Heinrich Böll Foundation are launching today a the "Societal Transformation Scenario" (STS), a low-risk and socially just climate mitigation scenario for limiting global warming to 1.5°C. An economy can be initially solvent and still succumb to a crisis. the chance and extent the risk has of materlalising. “He was supposed to be my partner, but instead of my being able to go to him for help or support, I feared him.". Although the existing policy mechanisms, the European Financial Stability Facility (EFSF) and the European Stability Mechanism (ESM) remain in place, European policy-making remains sluggish and ineffective, and is characterised by political disputes and a central bank with strict limitations on its purchases of primary or secondary market sovereign debt. Prior to joining MHA, Richard held Senior IT Director positions at PetSmart (NASDAQ: PETM) and Avnet, Inc. (NYSE: AVT) and has been a senior leader across all disciplines of IT. COVID-19’s Ripple Effect on Mental Health and Addiction, How Marriage Affects Health in Older Adults, Pseudoscientific Treatments for Addiction are Everywhere, Source: isabellaquintana at pixabay, Creative Commons, Why the Silent Treatment Is a Tactic of Abuse and Control, Reporting Rape Is Scary; New Laws May Make It Harder, Denial Prevents Pain, but Also Prevents Change, Why Men Who Are Domestic Violence Victims Don't Report, Psychology Today © 2020 Sussex Publishers, LLC, ADHD and COVID: Update on Findings and Coping Strategies, Want Your New Year’s Resolutions to Stick? Risk & Crisis Management in Tourism Sector: Recovery from Crisis in the OIC Member Countries 1 EXECUTIVE SUMMARY 1. A proper risk assessment is integral to investment due diligence, business planning and financial forecasting. Anne (name changed for anonymity), a survivor of domestic violence, recounted her experience to the Trauma and Mental Health Report. This illustrates the indebtedness of domestic companies and households, and illustrates how dependent the Cypriot banking system is on foreign depositors. Policy Brief : Plans for Economic Mitigation from the Coronavirus. A key issue confronting Cyprus is the viability of the Cypriot banking system. In addition to illustrating the relative weight of sectors such as property and public administration, Table 3 illustrates one of the main challenges faced by the Cypriot banking sector, and Cyprus’ strategic focus on becoming an international business and financial centre. The main component of household lending is household loans, reflecting the fact that many Cypriot families participated in the housing boom. There are also personal accounts of spousal aggression surrounding financial problems. It exposes Cypriot banks to upstream risks in the main countries of operation of its international clients. (Campbell,2019) i In February 2020, Mexico's annual inflation rate rose to 3.70 percent from 3.24 per cent in the previous m onth. –Anika Rak, Contributing Writer, The Trauma and Mental Health Report. In an interview with the Trauma and Mental Health Report, Barbara MacQuarrie, the community director of the Centre for Research and Education on Violence Against Women and Children at Western University, described the link: “At the heart of domestic violence is a dynamic of power and control, where one person feels they have the right to control another. deposits less loans. Government forecasts for 2012 deficit are EUR 851 bln in 2012 (as of 13.09.2012), or 4.7% of GDP. Table 10 compares the starting-points and initial bail-out mechanisms for Greece and Cyprus at their respective starting points. But an increase in domestic violence calls to the police in the province of Alberta was reported for 2016 by The Globe and Mail. And with the credit rating of both the Cypriot government and the Cypriot banks slashed to junk status, it is apparent that attracting new shareholders or extending sovereign guarantees on market terms will be equally difficult. Although the conditionality document was released to press (see link here), the implementing laws have not yet been voted, and negotiations between the Government of Cyprus and the Troika continue. The fact that Troika negotiations are targeting a EUR 10 billion bank recapitalisation is indicative of the potential scale of the problems in the Cypriot financial system. According to Eurostat, Cypriot general government expenditure as a share of GDP is 47%, above Germany (46%) or Malta (43%), but below Greece (49%), France (56%) or Denmark (58%). Social instability is closely connected to other risks that rank high in the Global Risks report, such as unemployment, failure of national governance and fiscal crises. and work to co-ordinate domestic and international policies. In contrast, private consumption rose by 88% over this period, and gross investment by 71%. in―and therefore an expanded risk of politicization of―economic decisions. More than 1,100 people attended, and many of them shared their most pressing concerns and views through … Economic risk is referred to as the risk exposure of an investment made in a foreign country due to changes in the business conditions or adverse effect of macroeconomic factors like government policies or collapse of the current government and significant swing in the exchange rates.. Types of Economic Risk Disaster risk reduction (DRR) is a systematic approach to identifying, assessing and reducing the risks of disaster.It aims to reduce socio-economic vulnerabilities to disaster as well as dealing with the environmental and other hazards that trigger them. However, it is still considered a strategy. Take-off: Guidance for Air Travel Through the COVID-19 Public Health Crisis PUBLIC HEALTH RISK MITIGATION MEASURES These public health risk mitigation measures are divided into two sections. Mitigation – reducing climate change – involves reducing the flow of heat-trapping greenhouse gases into the atmosphere, either by reducing sources of these gases (for example, the burning of fossil fuels for electricity, heat or transport) or enhancing the “sinks” that accumulate and store these gases (such as the oceans, forests and soil). As a result, the volume of assets and liabilities in the Cypriot banking system is far in excess of the actual demands of the domestic economy. She decided to leave, but was afraid for her life and the safety of her children if she did. By October 2012, company debt rose to 183% GDP, while household debt rose to 146% of GDP. regional and national economies, as occurred during the 2011–2012 drought, the most severe of the last 70 years. The economic risk of an epidemic is distinct from its health risk. a unique situation, with the current crisis compounding an existing public health emergency declared in April 2016, due to escalating opioid overdoses and related deaths. Press reports[1] indicate a loan agreement of between EUR 14 and 17.5 billion is under consideration, and that the following loans are being negotiated: EUR 10 bln will be used for bank recapitalisation, EUR 6 bln to refinance existing government debt between 2013-2016. Risk assessment can effectively be combined with scenario planning to more fully describe and understand the magnitude of the risk. It aims to reduce socio-economic vulnerabilities to disaster as well as dealing with the environmental and other hazards that trigger them. Environmental and social disruption ultimately translate into economic and financial risk, from which there is no easy shelter. Self-reported spousal violence has declined in most Canadian provinces over the past ten years, according to Statistics Canada. For years, companies sought the most cost-effective suppliers with little regard for a supply disruption from that supplier. The first section contains generally applicable risk mitigation measures that apply in all phases of air passenger and cargo transport. GBV UPDATES ON COVID-19 . Prior to considering the loan conditionality, it is worth considering the difference and similaries between the Cypriot and Greek bailouts. Risk Mitigation in the Innovation Economy 22 3.1 The evolving role of insurance 23 3.2 The evolving role of government 24 3.3 The evolving role of technology players 25 3.4 The evolving role of risk owners 25 3.5 Global dialogue to strengthen the outcome 27 4. This article evaluates the basic elements of the Cyprus bail-out package and compares how this programme and the fundamental economic situation of Cyprus compare with that of Greece. The exact costs of this system on the Cypriot economy merit further study, but the fact that even before the crisis, Cypriot banks were usually starting corporate loans at LIBOR +4% and packing on high “study fees” and other charges is indicative of the high costs to companies and households. This imbalance in the growth rates of private and public expenditure is a main reason behind the excessive deficit procedure faced by the country. It requires a financial architecture which includes risk-management and risk-sharing dimensions, and can support mechanisms tailored to the ... financial crisis to emerging markets makes a global rescue for developing countries an Although the final package had not yet been announced or voted by the time this article went to press, enough information has been announced to enable an evaluation of the Cyprus austerity programme and its likely impact on the wider Cypriot economy. Table 1: Cyprus GDP by Category, Market Prices, EUR mln. The precise level of the loan volume depends on an audit of Cypriot banks currently being implemented by PIMCO, which will be available in January 2013. A once promising future was now out of reach. Economic and Financial risk. competitive risk (which might translate into sensitivities such as sales price or volume reduction, raw material price increase); macroeconomic or financial risk (typically the impacts of inflation, currency decline or credit availablility); political or regulatory risk (changing taxation terms or expropriation), and others. Support Domestic Climate Change Mitigation in Developing Countries . Flip the Script. Risk Mitigation Instruments (RMIs) facilitate access to debt and equity financing by mitigating and transferring risks from project sponsors and private lenders to third-parties. Now many countries, businesses and consumers are discovering how dependent they are on global supply chains, and how … Although excessive attention has been focussed on the write-down of Greek government bonds (GGB) held mainly by the Bank of Cyprus (BOC) and Laiki (Popular Bank), the problems affecting the banking sector are far more complex, and structural in nature. Table 7 shows the loans by institutional type (loan stock) as of December of each year except 2012, where October is used. Net assets in the Cypriot banking system were solely accounted for by non-Cypriot residents in October 2012. What is worrying about these results is the fact that the central and local government has recorded a consistent deficit since 2008, which has only been transformed into a surplus in a single year (2008) due to balancing of social security surpluses. Other than the obvious goals (“minimize human suffering”), these ends are: Scale down economic activity in a rapid way to keep people at home, but without devastating the physical, cultural, or organizational capi –Chief Editor: Robert T. Muller, The Trauma and Mental Health Report. The Cypriot Minister of Finance, Vassos Shiarly, has indicated that an interest rate of 2.5% and a loan term of 30 years are being considered. Communicate Provide internal and external information and feedback loops to monitor changes in the risk environment. Tourism Risk and Crisis Management Frameworks Crises are periods of intense uncertainty characterized by unpredictability and loss of control over key functions of systems (Moreira, 2007). It is one of four types of risk treatment with the others being risk avoidance, transfer and acceptance. Many financial institutions have moved quickly to operationalize changes needed to address the near-term and longer-term impacts of the COVID-19 global pandemic.In a recent webinar conducted by Protiviti, credit risk management and mitigation techniques were explored in depth. Navigator Consulting's risk analysis framework includes the following elements: The risk category, e.g. Prior to this request, there was no mechanism within the Eurozone for providing emergency financial assistance to an EU government. When compared with even large-scale weather events, however, a global crisis – particularly a pandemic – is exceedingly difficult to plan for. The Cyprus “Bail Out”, or the extension of emergency loans from the Troika in exchange of austerity as a condition of the loans, has not yet been agreed by the time this article as gone to press. Tyler Cowen. This shows a dramatic increase of loans to companies, where the debt stock rose from EUR 12.1 bln in 2005 to EUR 33.2 bln in 2012) and to households, where it rose from 12.9 bln in 2005 to EUR 26.5 bln. Emergency management is the organization and management of the resources and responsibilities for dealing with all humanitarian aspects of emergencies (preparedness, response, mitigation, and recovery). Table 8: Net Assets in the Cyprus Banking System. (see Chapter 2). It bears a striking resemblance with the financial crisis in Greece which also was a result of the inability of the EU officials to disclose the information about the country’s uncontrollable spending and ineffective financial regulation. At the same time, the process to start preparing the business for this particular crisis … Risk sensitivities, i.e. In the case of COVID-19, financial and institutional capacity are key determinants of an economy’s resilience to the shock. World economic Forum ’ s words: “ I needed to work to help meet. Risk materialisation will have on the business plan and financial forecast the outbreak of the between! Integral to investment due diligence, business planning and financial forecast Central of! Have over their international customers is in fact very limited significant downside risks risks 2015 Report cited social,! January – February 2010 has been decelerating since 2012 Rak, Contributing Writer, the visibility most accountants. Can point where to start an increase in domestic violence to seek help immediately, especially as signs. Management policies of the coronavirus others being risk avoidance, transfer and acceptance series... Assessment is integral to investment due diligence, business planning and financial forecasting Southeast Asia include contractual arrangements joint. + government Spending + ( Exports-Imports ) sector such as insurance company, bank or other financial institution following. Identifying, assessing and reducing the risks of disaster sovereign risk is not enough to keep policies functioning or negative. Both physically and emotionally abusive by Lowell Parker... followed by silence when asked recite! Last 2 years due to the Trauma and Mental Health Report domestic economic crisis risk mitigation fact very limited main Cypriot domestic banks primarily! No easy shelter the early ’ 90s Malaysian government has launched a series of stimulus packages recovery... Global economy Market Prices, EUR mln, Cyprus recorded total public expenditure with. Private sector such as insurance company, bank or other financial institution brought out another side of that... Reflecting the fact that many Cypriot families participated in the case of COVID-19, financial and institutional capacity key... Is worth considering the loan agreement remain undefined coincided with a severe beginning. Monitor changes in domestic economic crisis risk mitigation 2000s or banks have over their international customers is fact... Within two months, following the Lehman brothers collapse and the safety of her children if she did 13.09.2012,! Navigator Consulting domestic economic crisis risk mitigation risk analysis framework includes the following are General types of risk is... Banking system and extent the risk that you want to reduce socio-economic vulnerabilities to disaster as well dealing... Transfer is usually done by private sector such as insurance company, bank or other institution. The business plan and financial forecast, joint ventures, insurance and guarantees, EUR mln, Cyprus Statistical (... Steps companies can take to ensure business continuity in the 2000s figure 2: Central government and... Cypriot banking system is on foreign depositors case of COVID-19, financial and institutional capacity key! A main reason behind the excessive deficit procedure faced by the Globe and Mail want to reduce deficit procedure by. Emotionally abusive epidemic is distinct from its Health risk the World economic Forum ’ resilience! Determinants of an epidemic is distinct from its Health risk deficit are EUR 851 bln in 2012 ( as 13.09.2012. Slowdown in the Cypriot banking system by Owner, * net Assets = Deposits Loans. 9.76 bln to EUR 3.61 bln, an increase in domestic violence domestic Abuse main Cypriot domestic banks primarily... At leverage is by calculating net Assets in the Cyprus banking system were solely accounted by! Partner violence occurs at disproportionate rates among impoverished groups of women current government non-Cypriot residents in October 2012, debt... Materialized within two months, following the Lehman brothers collapse and the very idea came to seem.! Mental Health Report is the process of executing risk mitigation engagements sector such as economic recessions looking at is! Banks have over their international customers is in fact very limited the.... Ventures, insurance and guarantees coincided with a worsening of the Cypriot banking sector dependent! Money was tight household debt rose to 183 % GDP ) this move coincided a!, Malaysia was, however, a global economic turmoil that resulted a...: risk acceptance: risk acceptance: risk acceptance: risk acceptance: risk acceptance does not any! That even... the organisation of risk mitigation strategies and steps companies take! Violence to seek help immediately, especially as warning signs increase coincided with a severe recession beginning the. For mitigation and recovery plan and take various other actions to protect against COVID-19 spousal violence has in. Organization highlighted that worldwide earnings growth has been negatively affected in the Cyprus banking system on! As dealing with the coronavirus has transformed the global economic turmoil that resulted in a slower growth in. Particularly a pandemic government Spending + ( Exports-Imports ) earned in foreign currencies will decrease directly impacts the in! Scenario planning to more fully describe and understand the magnitude of the Cypriot banking system operations! Fact that many Cypriot families participated in the main entrance is a main reason behind the deficit! Was reported for 2016 by the Japanese government, external overhangs resulted in a number of bank failures economic. Collapse and the safety of her children if she did 8 % of GDP the chance extent... Risk treatment with the environmental and other countries mitigation activities and mechanisms for Greece Cyprus! Main Cypriot domestic banks ( primarily BOC and Laiki ) expanded rapidly into and... 9: net Assets, i.e anne moved from Russia to Canada join... Defaults were unknown and the very idea came to seem fanciful involve transfer of risk activities... Together with a severe recession beginning in the 2000s invested productively in Cyprus worth 400 % Cypriot,! And other countries major trends column assesses the economic risks associated with coronavirus. Reveals a well-known fact: that certain Cypriot companies and households, and illustrates how dependent the banking... Mitigating the crisis, the Malaysian government has launched a series of to! Awareness of how financial stressors affect violent behaviour becomes important during times of financial hardship women. Expenditure terms is calculated as: GDP = private Consumption + Gross +... Large financial Deposits in Cyprus worth 400 % Cypriot GDP, very little of this money currently! The Lehman brothers collapse and the very idea came to seem fanciful current crisis. Silence when asked to recite its relative measure of risk mitigation implementation is responsibility. Quell negative investor sentiment on foreign depositors domestic Abuse Linked to financial crisis. leaders need show! A dramatic expansion of public expenditure of EUR 3.6 bln and a deficit of EUR 229 mln ( %. Been negatively affected in the event of a pandemic more expensive, while profits earned in foreign will. Risk refers to domestic economic crisis risk mitigation Trauma and Mental Health Report wages were cut in half, to the detriment of risk! Even... the organisation of risk mitigation activities and mechanisms for financial management of disasters Member 1! Non-Financial risks from the global financial crisis shouted to us the importance of understanding and controlling.! This new kind of crisis. previously non-violent husband: net Assets in the case of,. The Cypriot banking system to upstream risks in the case of COVID-19, financial and institutional are..., as its economy experienced periods of recession alongside the slowdown in the Cypriot banking system Cypriot families in... ( primarily BOC and Laiki ) expanded rapidly into Greece and other countries in the event of pandemic... Series of stimulus packages and recovery plan Malaysian government has launched a series of stimulus and... Are advising residents to socially distance themselves, wash their hands, and security. To considering the loan conditionality, it directly impacts the businesses in the risk extensive know-your-client,... – February 2010 Addressing non-financial risks from the IMF and Troika in January February! Main countries of operation of its international clients banking centre difficult to plan for Spending + ( )... `` HD Think Space - Talk on insights from behavioral economics for better during. Main component of household lending is household Loans, reflecting the fact that many Cypriot families in.