The Central Bank of Cyprus (CBC) has decided to keep the countercyclical capital buffer rate unchanged at 1.5 percent. This measure aims to maintain stability within the Cypriot financial system by ensuring adequate capital protection. The buffer rate will remain fixed with an application date set for January 14, 2026.

This decision falls under the CBC's responsibilities as outlined by the Macroprudential Oversight of Institutions Laws from 2015 to 2022. The countercyclical capital buffer is a key macroprudential tool used to bolster the banking sector’s resilience and safeguard the economy against potential systemic risks arising from economic fluctuations.