Despite the continuous challenges, the Cypriot banking system continues to register a positive course, which is reflected in the main supervisory indicators, Governor of the Central Bank of Cyprus (CBC), Christodoulos Patsalides says in his introduction in the CBC June 2024 Economic Bulletin which includes an analysis of developments in the Cypriot economy and the CBC’s macroeconomic forecasts.
The common equity capital ratio at the end of the first quarter of 2024, the Governor says, stood at 21.5%, compared to the European one which was 15.9% in March 2024. He adds that the liquidity coverage ratio was 341% in March 2024 , much higher than the minimum supervisory requirement.
Regarding Non-Performing Loans (NPLs) he says that they continue to register a decrease and their percentage as regards banks’ consolidated loan portfolio was at 7.3% at the end of March 2024.
He notes that as a result of the increased interest rates, banks continue to record an increase in their profitability in the first quarter o
f 2024. A significant part of this results from the placement of the excess liquidity they have in deposits with the ECB, he adds. Specifically, the Governor says, in the first three months, until March 31, 2024, the Cypriot banking system recorded profits of pound 345 million.
“Despite the remarkable performance there is no room for complacency, as the banking system is faced with an increased number of risks” he stresses.
Patsalides says that geopolitical developments, climate change, as well as the important but unpredictable technology sector are key supervisory priorities in recent years that banks need to address with the ultimate goal of maintaining their strength, resilience and competitiveness.
To this end, it is necessary to further strengthen corporate governance, the Governor concludes.
Source : Cyprus News Agency