CYPRUS: Due diligence exercise for the Banking System

The Central Bank of Cyprus announces that, at the request of the Troika, it is proceeding with an independent due diligence exercise of the Cypriot banking system, which includes an asset quality review and a bottom-up stress test to determine the capital needs of each banking institution participating in the exercise. The following banking institutions will be covered: Bank of Cyprus, Cyprus Popular Bank, Hellenic Bank, Co-Operative Central Bank together with a representative sample of affiliated co-operative credit institutions, the Limassol Co-Operative Savings Bank, Eurobank EFG Cyprus and Alpha Bank Cyprus.

The exercise will be carried out by PIMCO in cooperation with Deloitte for the parts of the exercise requiring auditor expertise. It will be coordinated and overseen by a Steering Committee, which is made up of representatives of the Cypriot authorities and the international organisations involved in the financial assistance programme for Cyprus, namely the European Commission, the European Central Bank, the European Financial Stability Facility / European Stability Mechanism, the International Monetary Fund and the European Banking Authority.

The results of the exercise, once approved by the Steering Committee, will be published by the Central Bank of Cyprus.