Tags: Ross | Bank | Cyprus | recovery

Wilbur Ross: Bank of Cyprus Is 'Progressing at Good Pace'

By    |   Tuesday, 28 April 2015 07:40 AM

Wilbur Ross says the Bank of Cyprus, which is 19 percent controlled by his firm, W.L. Ross, is "progressing at a good pace regarding its recovery plan" based on the bank's 2014 results.

"Of course, the ongoing recession puts a damper on new lending, but we are now in position to say that Bank of Cyprus has reached a point where instead of focusing primarily on managing the fallout from the events of March 2013, it can focus ahead to its next steps," he said in an interview with the Cyprus Financial Mirror.

In addition to solid evidence of recovering confidence, "the results show that we are normalizing fast our funding structure," Ross added. "A small miracle occurred, largely unnoticed, in the reduction of ELA [emergency liquidity assistance] dependence as well."

Ross noted that profit before provisions totaled 745 million euros, up almost 28 percent from 2013.

"We believe that ultimately Bank of Cyprus will be a comparably good investment to our recent successes with Bank of Ireland and Virgin Money," he noted.

"Twelve months ago, the main concern was whether the bank would continue to exist. We are now able to gaze forward, to plan future moves and to engage in reforming certain aspects of the bank with a view to 'Bank of Cyprus, 2020.'"

When it comes to U.S. banks, if you thought the Dodd-Frank financial reform act of 2010 eradicated the dangers to our financial system, think again, says former Federal Reserve Chairman Paul Volcker.

"Even as the United States continues its long climb back from the financial crisis, it is all too clear that the federal financial regulatory structure is simply inadequate to head off future crises," he writes in The Washington Post.

"The structure that failed us in anticipating and responding to the emergency is largely still in place."

Many commentators have noted that the biggest banks have only grown bigger since the 2008 financial crisis. The six largest U.S. banks have about two-thirds of the assets in the country's banking system.

"Important progress has been made, here and internationally, in shoring up banking regulations, notably through stronger capital requirements," Volcker says.

"But, basically, the institutional structure for financial regulation — which traces its origins to the 1930s — has resisted repeated efforts for meaningful reform."

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Wilbur Ross says the Bank of Cyprus, which is 19 percent controlled by his firm, W.L. Ross, is "progressing at a good pace regarding its recovery plan" based on the bank's 2014 results.
Ross, Bank, Cyprus, recovery
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2015-40-28
Tuesday, 28 April 2015 07:40 AM
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