The Central Bank of Cyprus announced on Tuesday that it's raising the capital buffer requirements for the Bank of Cyprus and Hellenic Bank due to their systemic significance in the financial sector.

Following its annual review, the CBC 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). This designation underscores the crucial role these banks play in the nation's financial system, necessitating specific capital buffer levels to ensure stability.

From January 1st, 2023, the Bank of Cyprus will increase its O-SII buffer requirement to 1.875%, a rise from the 1.50% set in 2022. Similarly, the Hellenic Bank's buffer will climb from 1% to 1.25% for 2023.

However, capital buffer levels for Eurobank will remain at 0.75%, while both Astrobank and Alpha Bank will retain their 0.25% requirements.

Looking ahead to 2025, the Bank of Cyprus will have to bolster its capital buffer to 2.25%, and Hellenic Bank to 1.5%. For the other banks deemed as "systemically important," their capital buffer levels will remain unchanged in 2025.