NICOSIA (Reuters) - Cyprus adopted legislation on Friday allowing the government to split the island's failing lenders into good and bad banks as it races to clinch a bailout from the European Union and avert a financial meltdown.
Officials say the law is likely to be applied first to Cyprus's second largest lender, Cyprus Popular Bank, to restructure it without hurting small depositors.
(Writing by Matt Robinson; Editing by Jon Hemming)
