The President of the European Banking Authority, Jose Manuel Campa, said on Tuesday that the liquidity and capitalisation of the Cypriot banking system surpass the average of the European Union. He made this statement following his meeting with President Nikos Christodoulides at the Presidential Palace, in the presence of Constantinos Herodotou, the Governor of the Central Bank of Cyprus.

After the meeting, Herodotou expressed gratitude to the President of the European Banking Authority for accepting the invitation to visit Cyprus. He emphasized the close cooperation between the Authority and the Central Bank of Cyprus. Herodotou also highlighted the significance of the regulations implemented by the Authority, in collaboration with the Central Bank of Cyprus, which enabled the implementation of a moratorium on loan instalment payments during the initial lockdown period of the pandemic. These measures were crucial in safeguarding citizens during these challenging circumstances.

Regarding the meeting with the President of the Republic, Herodotou stated that they discussed various banking sector issues, as well as broader economic and current affairs matters.

In response, the President of the European Banking Authority praised the liquidity and capitalisation levels of the Cypriot banking system, describing them as excellent and surpassing the EU average. He further emphasized that banks have successfully reduced non-performing loans to rates that are close to the EU average. Additionally, he noted that European banks are adapting to the current economic cycle by adjusting to higher interest rates, while still providing support to the economy.

Campa also revealed that the European Banking Authority intends to release the results of its banking sector stress tests at the end of the month. He expressed hope that these results will continue to instill confidence among European citizens regarding the state of the banking sector.

The European Banking Authority (EBA) is an independent EU regulatory agency responsible for ensuring the stability and integrity of the European banking system. The EBA plays a crucial role in promoting supervisory convergence and maintaining a level playing field across EU member states. It develops and implements prudential standards and guidelines for banks, with the aim of enhancing financial stability and consumer protection. The EBA also conducts stress tests and risk assessments to evaluate the resilience of the banking sector. Furthermore, it facilitates cooperation and information sharing among national authorities, fostering a harmonized and well-regulated European banking landscape.