Nicosia: The Central Bank of Cyprus (CBC) maintains the countercyclical capital buffer rate at 1.5%.
According to Cyprus News Agency, a statement was issued on Thursday stating that, in line with the Macroprudential Oversight of Institutions Laws of 2015 to 2022, CBC found it suitable to keep the countercyclical buffer (CCyB) rate at 1.5%, effective from 14 January 2026.
The decision reflects the CBC’s ongoing assessment and consideration of the prevailing economic conditions. The countercyclical capital buffer is a tool used by central banks to protect the banking sector against periods of excess credit growth, and maintaining it at this level indicates CBC’s current stance on economic stability and resilience.
This measure is part of CBC’s broader strategy to ensure that financial institutions remain robust and capable of withstanding potential future economic challenges. The decision will continue to be reviewed in light of economic developments both domestically and internationally.