articles | 03 February 2014

BoC refers to evidence of improving stability in the banking sector

The Bank of Cyprus believes there is evidence of improving stability in the lender and generally in the banking sector. Nonetheless, it stipulates that it is fully committed to restoring the confidence of depositors and customers.

In an interview with the Cyprus News Agency, Chairman of the Board of the Bank Christis Hassapis and CEO of the Group John Patrick Hourican talked about the recent release of the first of the three fixed term deposits and the sale of the Group’s Business in Ukraine. After the shock of the Eurogroup decisions of last March and the consolidation process, the Bank's new Board and the new management are actively working to stabilize the Bank and restore the trust of depositors, which has gradually begun to return to the Bank as well as the banking sector in general. However, the Bank’s leadership does not take this trust for granted. “We need to keep earning their trust and we need to keep making progress in restoring the strength of the Bank”, Hourican notes.

The Bank now puts forward a new goal, empowerment through shrinking (Shrinking to Strength) and this includes the recent sale of its subsidiary bank in the Ukraine. For the restructuring plan, Hassapis notes that it is on track, adding that the goal is to create a bank attractive to investors. According to Hassapis, improving the stability of the deposit base and the liquidity of the Bank is also reflected in the recent release of the six – month fixed deposits, amounting to €950 million, which were frozen under the consolidation decree. However they say that problematic loans remain a source of concern, estimating that amid the ongoing economic contraction, the loan portfolio will continue to come under pressure.

To see the full text of the interview visit the source link.

Source: Financial Mirror

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