Central Bank of Cyprus introduces 1% systemic risk buffer for banks

The Central Bank of Cyprus (CBC) has announced the implementation of a Systemic Risk Buffer (SyRB) set at 1% for all licensed credit institutions operating within the Republic of Cyprus. This macroprudential measure is scheduled to come into effect on December 31, 2026, and will apply to all exposures of the covered financial institutions.

The decision was officially communicated by the CBC, citing its mandate to strengthen the resilience of the national banking system against potential systemic shocks. The move is anchored in Article 7 of the legislation concerning the Macroprudential Oversight of Institutions, which designates the Central Bank as the authority responsible for implementing these types of stability tools.

By introducing this buffer, the regulatory authority aims to ensure that banks maintain an additional cushion of capital to absorb losses during periods of financial stress. There are no further regulatory adjustments currently announced beyond this implementation date, marking a proactive step in the bank's long-term strategy for financial sector stability.