Central Bank of Cyprus maintains countercyclical buffer at 0%

The Central Bank of Cyprus announced it set countercyclical buffet at 0% of risk both of licenced credit institution and investment firms operating in Cyprus.

The decision took into account that the credit-to-GDP gap is lower than 2 percentage points, the CBC said.
 
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 are non-financial private sector indebtedness; banking sector resilience; the real estate market; the real economy; and external imbalances.