The President of the European Banking Authority (EBA), Jose Manuel Campa, commended the liquidity and capitalisation of the Cypriot banking system, stating that they are above the average levels seen in the European Union. Campa's remarks came after a meeting with Cypriot President Nikos Christodoulides, alongside Constantinos Herodotou, the Governor of the Central Bank of Cyprus.
Expressing gratitude for the visit, Governor Herodotou emphasized the close cooperation between the EBA and the Central Bank of Cyprus, noting the instrumental role played by the EBA in implementing regulations that protected citizens during the initial phase of pandemic-related loan repayment moratoriums.
During their meeting, discussions centered on banking sector matters as well as broader economic and current affairs. President Campa specifically commented on the positive state of Cyprus' banking system, highlighting the excellent levels of liquidity and capitalisation that surpass the EU average. He also noted that Cypriot banks have made significant progress in reducing non-performing loans, bringing them closer to the EU average.
Campa further explained that European banks are effectively adapting to the prevailing economic cycle, characterized by higher interest rates, while continuing to provide crucial support to the economy.
Looking ahead, Campa announced that the EBA will publish the results of the banking sector stress tests at the end of the month. He expressed hope that these results will reinforce the confidence of European citizens in the overall stability and resilience of the banking sector.
The positive assessment of the Cypriot banking system's liquidity and capitalisation by the EBA President underscores the ongoing efforts and progress made by Cyprus in ensuring a robust and sound financial sector.
By fLEXI tEAM