The Central Bank called today the indications from the SSM regarding the capital adequacy of the Cypriot banks, as "positive".
Speaking today at the parliament the CB governor Chrystalla Georgadji said that together with the positive signs in the banking sector, there are also "positive" indications as to the valuations of the capital adequacy which are at their final stage and pertain to 2015.
Based on current data, the Cooperative Central Bank will need a capital injection of200 mn to reinforce its capital base while bank of Cyprus did not recognise so far provisions of €600 mn and Hellenic bank of €70 mn.
All three systemic Cypriot banks expect that even after considering the additional possible provisions, their capital adequacy ratios will remain above the minimum requirement which is expected to be changed to 11,75% from its current level of 8%.
Ms. Georgadji appeared optimistic regarding the course of the non-performing loans stating that it has reversed.
NPLs totaled €27,3 bn as at September 2015.
She said that till September, €14 bn of loans were restructured noting that €10,5 bn of restructured loans are still included in NPLs due to the definition of NPLs.
She noted that restructurings increased in the third quarter of 2015 by 58% compared to the corresponding period of last year.
According to Ms. Georgadji this year business loans increased for the first time in three years by 3,1% while an increase in housing loans is also being registered.
"The increase of lending from the banking sector to households and especially to businesses and the productive sectors of the economy is necessary" she said.
In spite of these, she admitted that demand for loans is subdued.
Ms. Georgadji appeared optimistic about the course of the economy as well stating "I expect GDP growth of 1,5% or more in 2015 and more than 2% in 2016".
"Growth will come primarily from exports but also from investments that have already started to be made" she concluded.
Speaking today at the parliament the CB governor Chrystalla Georgadji said that together with the positive signs in the banking sector, there are also "positive" indications as to the valuations of the capital adequacy which are at their final stage and pertain to 2015.
Based on current data, the Cooperative Central Bank will need a capital injection of200 mn to reinforce its capital base while bank of Cyprus did not recognise so far provisions of €600 mn and Hellenic bank of €70 mn.
All three systemic Cypriot banks expect that even after considering the additional possible provisions, their capital adequacy ratios will remain above the minimum requirement which is expected to be changed to 11,75% from its current level of 8%.
Ms. Georgadji appeared optimistic regarding the course of the non-performing loans stating that it has reversed.
NPLs totaled €27,3 bn as at September 2015.
She said that till September, €14 bn of loans were restructured noting that €10,5 bn of restructured loans are still included in NPLs due to the definition of NPLs.
She noted that restructurings increased in the third quarter of 2015 by 58% compared to the corresponding period of last year.
According to Ms. Georgadji this year business loans increased for the first time in three years by 3,1% while an increase in housing loans is also being registered.
"The increase of lending from the banking sector to households and especially to businesses and the productive sectors of the economy is necessary" she said.
In spite of these, she admitted that demand for loans is subdued.
Ms. Georgadji appeared optimistic about the course of the economy as well stating "I expect GDP growth of 1,5% or more in 2015 and more than 2% in 2016".
"Growth will come primarily from exports but also from investments that have already started to be made" she concluded.
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