At 0% of the weighted assets, the Central Bank of Cyprus (CBC) set on February 24, 2021 the percentage of the anti-cyclical security capital reserve for the period 1 April 2021 – 30 June 2021 of each licensed credit institution .
This also applies to any Cypriot investment services company (CIF), which provides investment services for own account transactions or financial instruments and / or disposal of financial instruments with a commitment.
According to an announcement of the CBC based on the time series ending on September 30, 2020, the deviation of the credit index to the Gross Domestic Product (GDP) from its long-term trend (credit-to-GDP gap), using the broad credit definition is -61, 3, while the deviation of the credit ratio to GDP from its long-term trend, using the limited (banking) credit definition is -69.5.
It also states that since the deviation of the credit to GDP ratio from its long-term trend is less than 2 percentage points and taking into account the additional indicators assessed by the CBC, the stock guide is 0% and the countercyclical capital stock is set at 0 %.
According to the Communication, in addition to the deviation of the credit-to-GDP ratio from its long-term trend (credit-to-GDP gap), the CBC takes into account a number of quantitative and qualitative information when assessing the systemic risks associated with periods of credit expansion. .
Finally, he states that the additional indicators he evaluated concern the debt of the private non-financial sector, the resilience of the banking sector, the real estate market, the real economy and the external imbalances.
