The CBC reports that it has completed the annual review of the designation of systemic credit institutions
The Central Bank of Cyprus (CBC) has increased the amount of the O-SII capital reserve that Bank of Cyprus and Hellenic Bank must maintain due to their systemic nature, after the review of the definition of systemic credit institutions.< /p>
In a statement, the CBC states that it has completed the annual review of the definition of credit institutions that fall under the definition of O-SII institutions for 2023. “In particular, the CBC has identified Bank of Cyprus Public Company Ltd, Hellenic Bank Public Company Ltd, Eurobank Cyprus Ltd, Astrobank Ltd and Alpha Bank Cyprus Ltd as Other Systemically Important Institutions (O-SII Institutions) and determined the amount of O-SII capital buffer that they must maintain due to their systemic nature”.
In relation to the previous decision taken on 22 December 2022, from 1 January 2024 the Bank of Cyprus should increase the amount of the O-SII capital buffer to 1.875% from 1.50% which was for 2023, while Hellenic Bank should increase it to 1.25% from 1% that was for 2023.
Eurobank maintains the rate at 0.75%, while Astrobank and Alpha Bank keep the rate at 0.25%.
For 2025, Bank of Cyprus should further increase the rate to 2.25% and Hellenic Bank to 1.50%. The rest of the banks listed as systemic maintain the same percentage for 2025.