Review Hari Stefanatos
Many measures have been taken to stabilize the banking sector and the economy, says the French Head of Integrated Supervisory Mechanism, Daniel Nuit, in an interview to daily “Phileleuthero”. “I believe”, he adds, “that the best way for the Cypriot banks to supplement their capital needs is through the market”.
Nouy avoids answering which capital needs will result from the stress tests for the Cypriot and Greek banks, indicating that the data will not be available until the second half of October. In this regard, she notes, “I would tell people to not pay attention to rumors”.
Referring to the banking union, she states that the control of banks is not affected by local feasibilities and should lead to a more robust and efficient banking system.
For Cyprus and its citizens Nuit stresses that “it will mean a great deal. First, it will help restore confidence in the banking sector in Cyprus. Second, after the completion of a comprehensive assessment it will be possible to examine the gradual relaxation of external restrictive measures. Third, banks will be able to have better access to markets and will support economic activity as it will allow the restoration of credit flow.