The recent "bail-in" of Cyprus by the EU, IMF and European Central Bank troika forced depositors in Cyprus banks to turn over about 40% of their assets to the banking system. This action hasn't caused a bank run in the greater eurozone yet, so we asked professional investors why this is the case. Forty-eight percent of respondents believe that the public is taking a wait-and-see approach to consider how events in Cyprus unfold. The next two most common responses are that the situation in Cyprus is unique (23% of respondents) and that people remain unconcerned that the events in Cyprus could affect them (16% of respondents). The combination of these three responses suggests that 85% of investors view the events in Cyprus as no immediate threat to the rest of Europe. In a fascinating juxtaposition, only 3% of respondents view the European banking system as solvent and only 13% view the existing depositor insurance as adequate. In total, these results imply that investors view the system as unsafe but believe the events in Cyprus are unlikely to impact the whole of Europe. Ron Rimkus, Content Director, CFA Institute

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