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

The CBC determined that the current level of capital protection remains appropriate for the stability of the Cypriot financial system.

This 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.

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

The countercyclical capital buffer serves as a vital macroprudential tool designed to strengthen the resilience of the banking sector.

This measure is intended to protect the economy against potential systemic risks that may emerge during the course of the economic cycle.