The Central Bank of Cyprus, based on its annual reassessment of the designation of credit institutions that meet the definition of O-SII institutions for 2025, designated Bank of Cyprus Public Company Ltd, Eurobank Limited (previous name: Hellenic Bank Public Company Ltd), and Αlpha Bank Cyprus Ltd as Other Systemically Important Institutions (O-SII institutions) and set the level of the O-SII capital buffer that they must maintain as a result of their systemic importance.
A press release by the CBC says that notably, the increase in the systemic importance of the above credit institutions—either through organic growth or through mergers and acquisitions—led to an increase in the level of the O-SII capital buffer for each institution designated as an O-SII. By raising the O-SII buffer rate, part of these credit institutions’ profitability is channelled towards strengthening their resilience, thereby compensating for the higher risk they pose to the country's financial system and the potential consequences that their failure could entail.
It is noted that the CBC, within the scope of its responsibilities as the national macroprudential authority, continuously monitors developments in the financial system in order to identify and assess potential systemic risks. At the current juncture, and in addition to the known risks, the CBC places particular emphasis on the monitoring and assessment of geopolitical risk, country risk and concentration risk, it says.
If deemed necessary, the CBC may activate the additional macroprudential tools it has at its disposal, with a view to limiting the build-up of systemic risks and further strengthening the resilience of the financial sector, it notes.
More specifically, the CBC says that in accordance with its policy for the designation of credit institutions that meet the definition of Other Systemically Important Institutions (O-SII) and the methodology for the determination of the O-SII buffer requirement, concluded on 21 November 2025 its annual reassessment of the designation of credit institutions that meet the definition of O-SII institutions for 2025.
In accordance with the CBC's reassessment, three credit institutions have been designated as O-SII institutions.
Bank of Cyprus Public Company Ltd, Total O-SII score (Basis Points, the total score of the Cyprus credit institutions sector is 10,000 basis points) 4,068, O-SII buffer requirement applicable as of 1 January 2026, 2.25%, O-SII buffer requirement applicable as of 1 January 2025, 1.9375%, Eurobank Limited (Previous name: Hellenic Bank Public Company Ltd) Total O-SII score (Basis Points) 3,938, O-SII buffer requirement applicable as of 1 January 2026, 2%, O-SII buffer requirement applicable as of 1 January 2025, 1.50%, and Αlpha Bank Cyprus Ltd, Total O-SII score (Basis Points), 1,023, O-SII buffer requirement applicable as of 1 January 2026, 0.50%, O-SII buffer requirement applicable as of 1 January 2025, 0.25%.
(Source: CNA)
