Therefore, our banking system will not be harmed in relation to these bonds, the domestic supervisor clarifies
The Central Bank of Cyprus informs that Cypriot banks do not have any exposure to Credit Suisse AT1 bonds, therefore, as it states, the Cyprus banking system does not will suffer a loss in relation to the bonds in question.
In its announcement the Central Bank of Cyprus (CBC) following the deal between Credit Suisse and UBS, issued a statement welcoming the measures taken by the Swiss authorities to maintaining global financial stability.
At the same time, the CBC informed that the Cypriot banks do not have any exposure to Credit Suisse's AT1 bonds. Finally, the CBC notes that the Cyprus banking system has high capital adequacy and liquidity ratios, characteristics that significantly increase its resilience.
Earlier in the day, a private meeting was held between the President of the Republic, Mr. Nikos Christodoulides, and the Governor of the Central Bank of Cyprus, Mr. Constantinos Herodotou.
At the meeting, the President of the Republic and the Governor had the opportunity to exchange views on current international developments in the banking sector. In particular in relation to the Swiss bank Credit Suisse, both the President of the Republic and the Governor expressed their satisfaction with the actions taken by the Swiss Authorities to ensure global financial stability.
In that, regarding the domestic banking sector, the common understanding that the Cypriot banking system is resilient and able to continue supporting the real economy was confirmed during the meeting. “Cypriot banks today have significant capital adequacy and liquidity. This is also due to the prudent policy and successful management of the various significant challenges in the sector in recent years”, it was noted.
