Cyprus Banking Crisis: What really happened, the myth, the collapse and now what?

This thesis aims to comparatively analyze the Cyprus Financial Crisis that hit the island in 2012/2013 and led to the shut down of all Banking activities for a period of 12 days. Also it will go over the other 4 financial crisis that have occurred in Cyprus, in less than 15 years, in an attempts to understand why after 4 warnings such huge crisis took the country by shock. The aim of this study is to write a qualitative thesis that would explain what is known to us as the Cyprus Banking Crisis; which was mainly caused by its exposure to the existence of overleverage real estate companies, the Greek debt crisis, the reluctance of the Cypriot government to restructure its financial sector, its inability to refund state expenses from the international market, and last but not least by its exposure to corruption that unraveled with the fall of Laiki Bank and the implementation of a Memorandum of Understanding by the TROIKA. On the other hand, the choice of this topic is to try and unravel the truth behind what is said and to analyze the possible and measures that are continuously being implemented in an attempt to make sure another crisis does not hit the financial sector of the country. Keywords: Cyprus, crisis, sovereign debt, crisis management, TROIKA, bail-in, bail-out.