Although it is not clear why, the Chairman of the Bank of Cyprus, Andreas Artemis, resigned today.
The island's two largest banks, the Bank of Cyprus and Popular Bank, were bailed out following massive losses.
Big depositors at Laiki now could face an even tougher "haircut" than those with the Bank of Cyprus.
Popular Bank will be broken up immediately, and its viable assets will be integrated into the Bank of Cyprus.
Meanwhile the island's largest bank, the Bank of Cyprus, appealed for a bailout deal to save the economy from ruin.
The rest would have come from Cyprus itself and from those large depositors in the Bank of Cyprus and Laiki (Popular) Bank.
In return, the country is imposing extensive losses on deposits over 100, 000 euros at its two biggest banks, the Bank of Cyprus and Laiki.
The Bank of Cyprus (UK) is separately capitalised from its parent company and its customers are included within the UK Financial Services Compensation Scheme.
"We've had angry clients - Russian, Polish, British - calling us to see what's going on", says Demetris Taxitaris, head of asset management at the Bank of Cyprus.
Earlier, the boss of the Bank of Cyprus was sacked.
BBC: Cyprus banks to reopen on Thursday after bailout closure
Three years ago the Bank of Cyprus also bought large quantities of Greek bonds, largely for reasons unconnected with their rate of return or risk, to help out Greece.
There is some relief for those with savings of 100, 000 euros or less, because their cash will be transferred to the Bank of Cyprus, the country's biggest bank, and kept intact.
Pressure for funds grew on Wednesday when the Bank of Cyprus, the island's largest lender, said it would ask the state for 500m euros temporarily to meet a 30 June deadline to bolster its regulatory capital.
BBC: Cyprus not for sale, president says after bailout talks
So the big financial institutions like the Bank of Cyprus and Popular Bank asked for a bailout from the government, and the government came to the EU in June 2012 saying it needed a bailout in turn.
Laiki Bank and the Bank of Cyprus - the country's two biggest - will remain closed until Thursday, but all others will reopen on Tuesday after being closed for more than a week, Cyprus's central bank said.
The Governor of the Central Bank of Cyprus on whose watch this disastrous concentration of risk was accumulated was Anathasios Orphanides, now among the most vocal of those leveling accusations of blackmail.
Starting after Cyprus clinched its original bailout deal in the early hours of March 16, the Central Bank of Cyprus blocked all fund transfers out of the country except those it specifically approved, according to senior euro-zone officials.
Where a bank is unable to pay its deposits, the relevant decision is adopted by the Central Bank of Cyprus or, where a member bank is incorporated in a country outside the Republic of Cyprus, by the competent supervisory authority of the country of incorporation.
The country's two biggest banks, Bank of Cyprus and Laiki, are believed to be reliant on Emergency Liquidity Assistance provided by the Central Bank of Cyprus.
Beyond the immediate problems firms here will face because of a limit on transactions and a freeze of banking activity, Mr. Pilikos said he feared many of his organization's members wouldn't survive the blow delivered by the closure of Cyprus Popular Bank and the hefty haircut imposed on deposits in Bank of Cyprus.
Participation in the DPS is compulsory for all banks authorised by the Central Bank of Cyprus, i.e. banks incorporated in the Republic of Cyprus, including their branches in other countries, and the Cyprus branches of foreign banks, incorporated outside the Republic of Cyprus or the Member-States of the European Union.
The only question is whether Nicosia tries to stem the pace of deposit flight by imposing capital controls or whether the ECB allows the Central Bank of Cyprus to relax its collateral rules sufficiently to permit it to provide unlimited Emergency Liquidity Assistance to a recapitalized banking sector.
Both Bank of Cyprus and another big bank, Laiki, are believed to be reliant on the ECB's Emergency Liquidity Assistance, provided via the Central Bank of Cyprus.
Some 18 per cent of the deposits held in Cypriot banks by residents of other eurozone countries were pulled out in February, according to figures from the Central Bank of Cyprus.
Some 18 per cent of the deposits held in Cypriot banks by residents of other eurozone countries were pulled out in February, according to figures published on Thursday by the Central Bank of Cyprus.
They offer the OKPAY Debit Card which is issued by CSC24Seven.com Limited, a financial institution licensed by the Central Bank of Cyprus to issue cards.
The Central Bank of Cyprus says that Alvarez and Marsal are now investigating Laiki too - Cyprus's second largest bank, which is being wound up and folded into Bank of Cyprus.
In the many months it will take to rehabilitate Bank of Cyprus, the prospects of it providing adequate credit to households and businesses are slim indeed.
"Good" parts of the bank are being transferred to Bank of Cyprus.
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