The calmness of the financial markets in the face of the deteriorating Cyprus crisis in the past week has been remarkable. Although Cyprus is tiny enough to be completely overlooked in most circumstances, its economy and banking system have characteristics similar to other, much larger, eurozone countries. Cyprus is certainly at the extreme end, but an over-leveraged banking system, with insufficient capital and reliance on foreign funding, is familiar territory in the eurozone. http://link.ft.com/r/0QSDPP/1O5C4Q/QFZDL0/FKZXLE/NRCO9X/9A/h?a1=2013&a2=3&a3=24
