The countercyclical capital buffer (CCyB) rate for the period 1 July 2022 – 30 September 2022 remains at 0%.
The Central Bank of Cyprus (CBC), in accordance with the methodology described in its macroprudential policy, did not deem necessary to adjust the CCyB rate for the period 1 July 2022 – 30 September 2022 and, therefore, the CCyB rate remains at 0% of the total risk exposure amount of each licensed credit institution in the Republic.
Based on the time series ending on 30 December 2021:
Given that the credit-to-GDP gap is lower than 2 percentage points and taking into account the additional indicators that were assessed by the CBC, the benchmark buffer guide is 0% and the CCyB rate remains at 0%.
In addition to the credit-to-GDP gap, the CBC takes into account a range of quantitative and qualitative information in its assessment of system-wide risks associated with periods of excessive growth. The additional indicators assessed by the CBC relate to: Non-financial private sector indebtedness; banking sector resilience; the real estate market; the real economy; and external imbalances. The summary table of indicators used by the CBC is set out in this file.
Additional information on the CCyB, which, since its introduction on 1 January 2016, has been set on a quarterly basis, is provided in this file.