EL7.AI
Central BanksMedium•3 November 2026•
1 min read

Central Bank of Cyprus Mandates 1.0% Systemic Risk Buffer for Credit Institutions

Key Facts

1The Central Bank of Cyprus decided to introduce a 1.0% Systemic Risk Buffer applicable to all exposures of all authorized credit institutions.

The Central Bank of Cyprus decided to introduce a 1.0% Systemic Risk Buffer applicable to all exposures of all authorized credit institutions. According to CBN.com.cy, the mandate will take effect starting December 31, 2026, as part of an effort to bolster the banking sector's resilience against structural vulnerabilities that could impact financial stability.

The central bank stated that this measure addresses non-cyclical systemic risks not covered by existing macroprudential tools, citing elevated cybersecurity threats and the external environment as key concerns for Cyprus's open economy. The requirement ensures that credit institutions maintain sufficient capacity to absorb potential losses during periods of stress, while the regulator continues to monitor structural vulnerabilities on a regular basis.