The liquidity and capitalisation of the Cypriot banking system surpass the European Union average, President of the European Banking Authority, Jose Manuel Campa, said on Tuesday.
Campa made this statement after a meeting with President Christodoulides at the Presidential Palace, with the presence of Constantinos Herodotou, the Governor of the Central Bank of Cyprus.
Following the meeting, Herodotou expressed gratitude towards Campa for accepting the invitation to visit Cyprus and spoke about the close cooperation between the European Banking Authority and the Central Bank of Cyprus. Herodotou also highlighted that the implementation of the moratorium on loan payments during the initial phase of the pandemic was made possible through collaborative efforts with the European Banking Authority and the Central Bank of Cyprus, ensuring the protection of citizens under challenging circumstances.
Regarding the discussions with President Christodoulides, Herodotou stated that they covered various banking sector issues, as well as general economic and current affairs matters.
In his remarks, President Campa commended the robust liquidity and capitalisation levels of the Cypriot banking system, describing them as very favourable and surpassing the EU average. He further mentioned that non-performing loans have been significantly reduced by banks in Cyprus, approaching rates similar to those of the EU.
Campa noted that European banks are adapting to the current economic cycle, marked by higher interest rates while continuing to support the economy. He also shared that the European Banking Authority plans to release the results of its banking sector stress tests by the end of the month, expressing hope that these findings will instil confidence among European citizens regarding the state of the banking sector.