Central Bank of Cyprus maintains countercyclical capital buffer at 1.5%

The Central Bank of Cyprus (CBC) has announced the decision to maintain the countercyclical capital buffer (CCyB) at 1.5%. This decision was formalized following the legal framework established by the Macroprudential Supervision of Institutions Laws (2015–2022). The measure is set to become applicable starting January 14, 2026. According to the CBC, this rate is deemed appropriate to ensure financial stability and enhance the banking system's resilience against economic fluctuations. The buffer acts as a macroprudential tool designed to mitigate risks arising from excessive credit cycles. The institution also provided relevant quantitative data, including the credit-to-GDP ratio and its deviation from long-term trends, to justify the current assessment. Information regarding historical quarterly CCyB rates since 2016 is available through the official portal of the bank.