Cyprus central bank to conduct banks' stress test

AP News
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Posted: Sep 28, 2012 5:10 AM

LIMASSOL, Cyprus (AP) — Cyprus' central bank says the country's top lenders will undergo a stress test after a request from potential creditors to determine the amount of money they need to shore up their capital base.

The central bank said in a statement Friday that the stress test will be carried out by PIMCO and Deloitte, and will cover the country's top three banks — Bank of Cyprus, Laiki and Hellenic, as well as the Co-Operative Central Bank and the Cypriot arms of Eurobank EFG and Alpha Bank.

The process will be overseen by Cypriot authorities in conjunction with representatives from the so-called troika — the European Central Bank, the European Commission and the International Monetary Fund.

Cyprus applied to the troika in June for aid to prop up its Greece-exposed banks.