We don't believe there is any reason for fear mongering or any concerns,' Orphanides told reporters after talks with Kazamias. 'The Central Bank has complete trust in the banking system. Orphanides, who is also a European Central Bank Governing Board member, called the banks' capital-boosting plans 'satisfactory' and urged bank officials to implement them. The smaller Hellenic Bank posted a euro99.5 million loss after a 70 percent writedown. The Bank of Cyprus, the island's largest, last week posted a net loss of euro1.01 billion ($1.34 billion) for 2011, after including a 60 percent writedown on its Greek government bond holdings. Marfin Popular is the most Greece-exposed of the island's three biggest commercial banks, holding Greek bonds with a nominal value of a little over euro3 billion ($4 billion). When not counting the writedown, which amounted to euro1.97 billion ($2.65 billion), the bank said it managed to make a profit of euro338 million ($455 million) last year - an increase of 3.2 percent over the previous year. The bank will drop 'Marfin' from its name and revert to Cyprus Popular Bank, its name prior to it's 2006 merger with Greece's Marfin and Egnatia banks.Д«ank Chairman and former Cyprus finance minister Michael Sarris conceded that the bank has tightened lending given its plans to raise its capital base. Stylianides said the bank would shut about 35 branches - most of them in Greece - to curtail costs, but wouldn't say whether this would mean layoffs. They added that the government stands ready to financially prop up any bank if it's deemed necessary. Kikis Kazamias and Athanasios Orphanides said there was no reason for concern as long as banks followed through with their plans to boost their capital base.

It said that interest from the unnamed investors would 'be clarified over the next few months' so that it can meet the EU's capital buffer requirements by the June deadline.Д¬yprus' finance minister and Central Bank governor said losses sustained by Marfin Popular and the island's two other main commercial banks as a result of their Greek government bond holdings were 'manageable.'

Bank writedown