Central Bank determines buffer requirement for banks in Cyprus

The Central Bank of Cyprus has determined the O-SII buffer requirement for six banks.

In a press release, the CBC says that in accordance with its policy for the designation of Other Systemically Important Institutions (O-SII institutions) and the methodology for the determination of the O-SII buffer requirement, concluded on 29 November 2021 its annual reassessment of the designation of credit institutions that meet the definition of O-SII institutions.

In accordance with the CBC`s reassessment, six credit institutions have been designated as O-SII institutions, which are listed below along with the corresponding O-SII capital buffer rate each must meet.

The measure will be in effect as of January 1, 2022.

In particular, the Bank of Cyprus with a total O-SII score of 3,197 basis points should have a buffer of 1.00 per cent as of January 1, 2021, 1.250 per cent as of January 1, 2022 and 1.50 per cent as of January 1, 2023.

The Hellenic Bank with a total O-SII score of 2,552 basis points, should have a buffer of 0.75 per cent as of January 1, 2021, 1.875 per cent as of January 1, 2022 and 1.00 per cent as of January 1, 2023.

Eurobank Cyprus with a total O-SII score of 1,473 basis points, should have a buffer of 0.50 per cent as of January 1, 2021, 0.625 per cent as of January 1, 2022 and 0.75 per cent as of January 1, 2023.

RCB Bank with a total O-SII score of 1.029 basis points should have a buffer of 0.25 per cent as of January 1, 2021, 0.375 per cent as of January 1, 2022 and 0.50 per cent as of January 1, 2023.

AstroBank with a total O-SII score of 508 basis points should have a buffer of 0.25 per cent as of January 1, 2021, 0.250 per cent as of January 1, 2022 and 0.25 per cent as of January 1, 2023.

Alpha Bank Cyprus with a total O-SII score of 342 basis points should have a buffer of 0.25 per cent as of January 1, 2021, 0.250 per cent as of January 1, 2022 and 0.25 per cent as of January 1, 2023.