The Republic of Cyprus has a well developed banking system which is modelled on the British banking system. The Central Bank of Cyprus has responsibility for monetary and credit policy. In addition there are nine commercial banks and three specialist financial institutions. A number of foreign banks also have branches in Cyprus, including HSBC which now has branches in the north as well as the south of the island. The Bank of Cyprus, Laiki Bank and Hellenic Bank are the largest three commercial banks in Cyprus, with branches throughout the Republic.

Banking hours in the Republic of Cyprus are Monday to Friday from 8.15 a.m. to 12.30 p.m., with some banks in tourist areas also opening in the afternoons. The banking system is sophisticated and well-equipped with modern technology. It is relatively easy to transfer salaries, pensions and income from abroad into Cyprus.

Various Turkish and Turkish Cypriot banks operate in the Turkish Republic of Northern Cyprus. These are generally open from Monday to Friday between 8.00 a.m. and 12 noon and between 2.00 p.m. and 4.00 p.m.

Traveller's cheques and credit cards are generally acceptable in hotels, restaurants and larger shops in both the south and the north of the island.

Anyone resident in Cyprus can open a local bank account on providing evidence of their identity and any other documentation required by the specific bank. All banks are required by law to monitor overseas transactions and remittances to prevent money laundering, and there are limits on deposits of foreign currency within a calendar year without the prior approval of the Central Bank. Anyone entering or leaving Cyprus with 12,500 Euros or more must declare this to customs.