All reports tagged with: "banking sector"
Key findings form a real estate conference to discuss the state of the Cyprus property market recently hosted by RICS (Cyprus) at which the management of REOs and NPLs were also discussed.
The banking and real estate sectors in Cyprus are intertwined and the restoration of the health of the banking system is a vital necessity for the sustainable recovery of the real estate market.
Moody’s Investor Services has warned about the dangers lurking in the Cyprus Banking system due to the high percentage of non-performing loans and considers the banking sector risk to be “Very High”.
Non-performing loans might represent the single impediment to the recovery of not just the Cyprus banking sector but the island’s economy according to the CEO of the Bank of Cyprus.
The Bank of Cyprus leadership believes there is evidence of improving stability in the Bank and generally in the banking sector and points out that it is fully committed to restoring the confidence of depositors and customers.
For many years the banking sector in Cyprus adopted poor risk and credit management practices, dominated by asset based lending, and an overexpansion of the real estate market.
The Independent Commission on the Future of the Cyprus Banking Sector has published its final report and recommendations for the long term recovery of the Cypriot banking industry.
According to a report by Moody’s Investor Services, Cypriot banks and cooperatives may require some €1.5 billion on top of the €2.5 billion of EU support funds earmarked for the banking sector.
The restrictive measures on the movement of capital that Cyprus introduced in March could remain in place for a year or two and will only be removed gradually to safeguard financial stability.
How can the government carry out the necessary reforms if its coalition is weak and its main supporters are those who are most heavily indebted in a country that went bust because of too much debt?