Constantinos Herodotou, Governor of the Central Bank of Cyprus (CBC) told the Chief Operating Officers (CEO) of Cypriot-based banks to provide timely loan restructurings and reassess their data concerning deposit interest rates, amid increasing monetary tightening by the European Central Bank due to high inflation.
According to a press release issued by the CBC, Herodotou met with the management of the licensed credit institutions operating in Cyprus, with whom he discussed “crucial issues” facing the Cypriot banking system, such as the provision of sustainable loan restructurings and the level of deposit rates.
“The CBC Governor once more stressed the need to bank managements for the provision of timely loan restructurings as this would prove beneficial to the economy as a whole,” the CBC said, adding that Herodotou also referred to the issue of transparency concerning bank charges.
The CBC also said that Herodotou prompted the banks to proceed with the assessment of their data concerning the level of rate they to depositors “as soon as possible.”
Borrowers’ associations have raised the issue of loan defaults due to rising interest rates, as well as the issue of low deposit rates paid by the banks.
Herodotou also briefed the bans over the CBC’s projects concerning non-performing exposures and digital onboarding for the banking system.
According to the CBC, the meeting also touched upon the volatile international financial environment as well as further prudential actions aiming at the stability of the domestic banking system and the Cypriot economy.
Herodotou said the meeting took place in a constructive environment and confirmed the resilience of the banking system.