Results of the comprehensive assessment of the significant Cyprus credit institutions
The comprehensive assessment of the Cypriot significant credit institutions (Bank of Cyprus, Hellenic Bank, Co-Operative Central Bank and RCB Bank) was conducted in the framework of the comprehensive assessment of 130 banks across Eurozone by the European Central Bank (ECB). The aim of the comprehensive assessment, which was carried out in the context of the preparation for the taking over by the ECB of the direct supervision of significant banks within Eurozone as from 4 November 2014, was:
- Transparency: The improvement in the transparency through the improvement in the quality of the available information on the financial condition of each bank.
- Corrective action: The strengthening of the balance sheets of banks by taking corrective action to deal with any issues which may arise through the comprehensive assessment.
- Trust: The improvement in the trust towards banks by ensuring that, after taking the relevant corrective measures, the banks will be healthy and creditworthy.
The results were very positive for the Cyprus economy, showing that the actions taken in 2014 and all the efforts and measures to strengthen the banking sector were beyond satisfactory. The results of this exercise should help to strengthen the confidence of depositors in Cypriot banks, which will contribute to the efforts for economic growth. It is also expected that increased confidence will create the right conditions for the lifting of the remaining restrictive measures on the movement of capital.
Extensive details on the results of the exercise could be found here: www.centralbank.gov.cy/nqcontent.cfm.
Source: Media & Publications, Central Bank of Cyprus.