The Central Bank of Cyprus (CBC) on Thursday announced that it has decided to maintain the countercyclical capital buffer (CCyB) rate at 1.5 per cent.

The CBC explained that, in accordance with the Macroprudential Oversight of Institutions Laws of 2015 to 2022, it deemed it appropriate to keep the buffer unchanged.

“The countercyclical capital buffer rate will remain at 1.5 per cent,” the bank stated.

The decision takes effect from January 14, 2026.

The countercyclical capital buffer is a key macroprudential tool used by regulators to strengthen the banking sector’s resilience during periods of excessive credit growth.

By maintaining the buffer rate at its current level, the CBC signals confidence in the current economic outlook while keeping flexibility to adjust in response to evolving financial conditions.

The ECB has previously reported that overall capital requirements within the eurosystem have risen from 14.8 per cent in 2020 to 15.6 per cent at present.

This increase has been driven primarily by the countercyclical capital buffer, which has grown from an average of 0.1 per cent to 0.7 per cent.