Banks optimistic for brighter future despite NPL shadow

By 2013, Cypriot banks had assets of €126bn, almost seven times GDP. Small wonder that when the bubble burst, the impact was spectacular. But the recovery has been equally impressive, due in no small part to the quick and decisive action taken through capital controls and recapitalisations. However, whether that recovery can be maintained remains to be seen, as the mountain of impaired debts continues to weigh heavily.