Results of the European Central Bank (ECB) financial reviews aka stress tests on eurozone’s top 130 banks indicated that three of the four Cyprus banks which had been included in the tests are doing remarkably better.
ECB’s official results that were released on October 26th shown that Bank of Cyprus, Co-Op Bank and Russian Commercial Bank (RCB) have managed to address shortfalls from last year, and successfully re-establish stability in Cyprus’ Bank sector. Hellenic Bank however, has still an amount of just €105mn of a shortfall to cover.
More precisely, RCB, the Russian-owned bank based in Cyprus had not been found to have any problems while the Bank of Cyprus has successfully raised an additional €1bn from investors this year.
The test also showed that the €1bn that was earmarked as a capital buffer for the Co-Op bank would not be necessary, making a substantial impact on reducing the island’s projected dept, as Finance Minister Haris Georgiades stated.
Hellenic Bank stated that the bank is in the process of taking the necessary actions in order to raise more than 200 million Euros in additional capital by December.
Sources:
Hellenic Bank: Financial Results for the period ended 30 September 2014, 26 October 2014
Reuters, Michele Kambas, Bank test results show bailed-out Cyprus turning around -officials, 26 October 2014
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