Cyprus could set precedent for future crises - Analyst

CYPRUS COULD SET PRECEDENT FOR FUTURE CRISES - ANALYST Aftermath of the crisis in Cyprus causes concern that this could be more than just a one-off. Barclays' William Hobbs says that this time around markets have reacted calmly thanks to the credibility of the ECB but future crises could stir up worry more quickly. SHOWS: LONDON, ENGLAND, UK (REUTERS - ACCESS ALL) (MARCH 26, 2013) 1. BARCLAYS, VP OF RESEARCH, ECONOMICS & STRATEGY, SAYING: " (QUESTION: What do you think, the words from the Eurogroup head, is it a one-off or a precedent, Cyprus?) Yeah, I mean, one of the many questions that this bailout has raised is that whether this does set the template for future interventions. And if it does, what does that mean for stuff like bank funding? You know, I mean, that's all potentially very concerning. You know, Mr. Dijsselbloem seems clear that he wants the risks to be borne by those that take them but I think the real risk that you bear here is that you know, do depositors in future crises want to stick around if they start to sense trouble again, my suspicion would be that they would be a little bit more concerned. But for us, I think the most important actor in all of this remains the ECB. Their promise remains credible. And so we still feel comfortable taking risk in the Eurozone. (QUESTION: Are the markets ready to go beyond Cyprus now, do you think?) They haven't really reacted too badly and we've been surprised both through the Italian elections and this Cyprus crisis that, you know markets have seemed reasonably sanguine and- (QUESTION: And is that the ECB for you?) Yes, I think that's the most important thing still. I mean, if you looked at the behavior of peripheral bond markets post-Italian elections and even through this latest little blip, bond markets again have remained reasonably calm and I think that promise from the ECB remains pretty credible. (QUESTION: Are you one of those sanguine market players?) Yeah, I mean certainly we're mindful. I mean, would you set back in active markets in parti...