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articles | 25 August 2014

Danièle Nouy: Banking union to help restore confidence in Cyprus' banking sector

Daniele Nouy, chair of the supervisory board of the single supervisory mechanism (SSM) at the European Central Bank (ECB), has expressed the view that many measures have been taken to stabilize the banking sector and the economy, adding at the same time that the banking union would help restore confidence in the banking sector in Cyprus.

In an interview with the Greek language newspaper ‘Phileleftheros’, Nouy expressed the belief that "the best way for the Cypriot banks to meet any capital needs is through the market."

She also noted that data on the capital needs of Greek and Cypriot banks to emerge from the stress tests will not be available before the second half of October, calling on the citizens "not to give attention to rumours."

Askedwhat the banking union would mean for Cypriot citizens, she said that "first, it will help restore confidence in the banking sector in Cyprus. Secondly, after the completion of the total review it will be possible to consider the gradual relaxation of external restrictive measures. Third, banks will be able to have better access to markets and this will support economic activity as it will allow restoring the flow of credit."

Cyprus agreed in March last year a €10 billion bail out with its international lenders, IMF, European Central Bank and EU Commission.

Source: Stockwatch

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