Cyprus Mail
Main

Banks should fare well in stress test

INTERNATIONAL lenders seemed unconcerned on Monday over an upcoming stress test on European banks that will include lenders from Cyprus.

“I wouldn’t be too worried about it,” said the European Central Bank’s Isabel von Koppen Mertes, responding to a question at the Economist conference in Nicosia.

Cyprus is in a good position, particularly the Bank of Cyprus, she added.

Before the European Central Bank takes up its new role supervising eurozone banks from late next year, it plans to run a series of rigorous tests to uncover any possible shortfalls on the lenders’ balance sheets to avoid any surprises once it has taken charge.

The stress tests will include Bank of Cyprus, Hellenic Bank, cooperatives, and the Russian Commercial Bank.

The European Commission’s deputy director-general for economic and financial affairs said he did not expect Cypriot banks to need additional capital.

“I would not anticipate that more money would be required,” Maarten Verwey said.

But there were buffers in the bailout programme to tackle such an eventuality, he said, reiterating that he did not expect addition capital requirements to arise.

Bank of Cyprus was recently recapitalised by using depositor cash, a process known as bail-in, or haircut.

Co-operatives will receive around €1.5 billion from the island’s €10 billion bailout, while Hellenic managed to raise the necessary funds recently through private investors.

Around €1 billion set aside for banks remained unused.

Related Posts

Taking the Cypriot people for a ride

Christos Panayiotides

Alleged racist attack on Limassol

Nick Theodoulou

Brittain to take over as Premier League chair from 2023

Jonathan Shkurko

Labour inspectors find 18 undeclared workers

Herbert Diess, Volkswagen’s disruptor-in-chief, runs out of road

Reuters News Service

Ivana Trump, first wife of Donald Trump who helped build his empire, dies at 73

2 comments

Comments are closed.