EBA president: Cyprus' bank liquidity and capitalisation above EU average

12:54 - 04 July 2023

Economy

The liquidity and capitalisation of the Cypriot banking system is above the EU average, the President of the European Banking Authority (EBA), Jose Manuel Campa, has said.

He was speaking following a meeting with President Nikos Christodoulides in Nicosia, which was also attended by Central Bank of Cyprus governor Constantinos Herodotou.

Campa said that the Cypriot banking system’s liquidity and capitalisation levels were above the EU average, which was very good, and that the banks have reduced non-performing loans to rates close to the EU average.

He added that European banks are adjusting to the current economic cycle with higher interest rates while continuing to provide support to the economy.

Campa also said that the EBA will publish the results of its banking sector stress tests at the end of this month, expressing the hope that these results will continue to provide confidence to the European citizens on the status of the banking sector.

In his own statements, Herodotou thanked the EBA President for accepting the invitation to visit Cyprus and added that there is close cooperation between the Authority and the CBC.

He recalled that the implementation of the moratorium on loan instalment payments during the first lockdown period of the pandemic was made possible thanks to the regulations adopted by the Authority and in cooperation with the CBC, thus safeguarding citizens under the given circumstances.

As for the meeting with the President of the Republic, Herodotou said that they discussed banking sector issues, as well as general economic and current affairs issues.

(Source: CNA)

EBA president: Cyprus' bank liquidity and capitalisation above EU average

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