Central Bank of Cyprus keeps countercyclical capital buffer rate at 1.5 per cent

Nicosia, Cyprus. The Central Bank of Cyprus on Monday announced that it has decided to maintain the countercyclical capital buffer rate at 1.5 per cent. It said the current level of capital protection remains appropriate for the stability of the Cypriot financial system.

Decision and legal framework

The decision was reached within the framework of the responsibilities held by the Central Bank of Cyprus under the Macroprudential Oversight of Institutions Laws of 2015 to 2022.

Application date

The buffer rate will remain fixed at 1.5 per cent, with the established application date set for January 14, 2026.

Purpose of the measure

The countercyclical capital buffer is a macroprudential tool designed to strengthen the resilience of the banking sector. The measure is intended to protect the economy against potential systemic risks that may emerge during the course of the economic cycle.