The ECB's monetary policy aims to increase liquidity in the economy. In Cyprus, it is utilized by the two major systemic banks, Bank of Cyprus and Hellenic Bank, to increase their revenues and consequently their profits. Although both banks are “sinking” in liquidity, they have borrowed from the ECB through the program of targeted long-term refinancing operations (TLTRO) a total of 5.3 billion euros (Bank of Cyprus € 3 billion and Helliniki 2.3 billion euros).
Taking advantage of favorable financing terms they show additional income (increased net interest income). Bank of Cyprus for the period from June 2021 to June 2022 estimates the additional income at around € 15 million and Helliniki expects a profit of € 11 million Not at all bad…
Source: politis.com.cy
