Cyprus central bank picks Pimco to perform review of lenders
The Central Bank of Cyprus said it?s picked Pacific Investment Management Co. to carry out an independent review of the country?s banking system that?s been requested by the International Monetary Fund, the European Central Bank and the European Commission, the so-called troika.
The exercise includes an asset-quality review and a stress test to determine the capital needs of each institution, the central bank said in an e-mailed statement on Friday.
Cyprus became in June the fifth country in the euro area to seek external aid and the region?s finance ministers agreed to hold talks. No amount was specified for the rescue, which will encompass the public sector as well as banks. Cyprus also sought assistance from the IMF and Russia.
Deloitte will carry out those parts of the exercise that require auditor expertise. The review covers Bank of Cyprus Plc, Cyprus Popular Bank Pcl, Hellenic Bank Pcl, Limassol Co- operative Savings Bank, the Cypriot units of Eurobank Ergasias SA, Alpha Bank SA and the Co-operative Central Bank, along with a sample of affiliated co-operative credit institutions, according to the statement.
The exercise will be coordinated and overseen by a steering committee comprising representatives of the Cypriot authorities, the troika and the region?s rescue funds. The steering committee will approve the results of the review, the central bank said.
[Bloomberg]
