Central Bank of Cyprus maintains countercyclical capital buffer at 1.5%

The Central Bank of Cyprus (CBC) announced on September 29, 2026, that it has decided to maintain the countercyclical capital buffer (CCyB) rate at 1.5% for all exposures within the Republic of Cyprus.

This specific rate was originally established by a formal decision on January 14, 2025, and has been in effect since January 14, 2026. The buffer serves as a macroprudential tool designed to ensure that credit institutions maintain sufficient capital levels during different phases of the economic cycle.

As part of its ongoing macroprudential supervision, the Central Bank of Cyprus conducts a comprehensive review of the buffer rate on a quarterly basis. These evaluations take into account various economic indicators, most notably the credit-to-GDP gap and its deviation from long-term trends, to assess whether adjustments are necessary to mitigate systemic risks.

The current decision confirms that the 1.5% rate remains appropriate under existing economic conditions. The CBC will continue to monitor the market and reassess the capital requirements in future quarterly reviews to ensure the stability of the national banking sector.