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Our aim is a smaller, stronger but safer bank, BOCY CEO says

06 March, 2014

John Patrick Hourican, CEO of Bank of Cyprus, the island`s largest lender said Wednesday that the bank’s management aims at "a strong albeit smaller safer bank."

Hourican was appointed as BOC CEO after the bank entered a resolution process while 47.5% of its deposits over €100,000 have been seized to recapitalise the bank, as part of a €10 billion bailout Cyprus received from the European Commission, the European Central Bank and the IMF.

"The importance of today is to try and get back to doing business as normal," Hourican said addressing a presentation on Global Asset Management, organized by CISCO, BOCY`s subsidiary in cooperation with Schroder capital management firm.

"The unprecedented bail in on depositors removed the one ingredient that creates a banking environment that is confidence. We have embarked on a recapatalised journey with a real cloud of difficulty hanging over the bank and the country in reestablishing that credibility that is natural to capitalism which is the confidence that savings get converted to wealth creation loans and engines of growth for an economy," he said.

Noting that the bank relies on Central Bank and ECB funding, Hourican noted that "it is our job to take it on a journey from being today inappropriately funded and back to being a strong albeit smaller safer bank."

Referring to the bank`s strategy, the former RBS banker said that BOCY will focus on serving on its local customers as well as foreign customers that come to the island.