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Cypriot Capital Markets Authority Unveils New DORA Fee Structure for Financial Entities

Overview

The Cypriot Capital Markets Authority has issued a new policy statement—DP-03-2025—detailing the fee structure applicable to financial entities governed by the Digital Operational Resilience Act (DORA). This announcement marks a significant regulatory update aimed at enhancing operational resilience while reducing the sector’s dependency on public funding.

Fee Structure and Adjustments

Under the new framework, the annual supervisory fee is set to range between €2,000 and €20,000 based on the size and scale of each entity. Additionally, a fixed evaluation fee of €20,000 has been established for Threat-Led Penetration Testing (TLPT). These fees have been refined following a public consultation process (ED-01-2025), resulting in notable reductions for very small and small enterprises as well as adjustments in the TLPT fee structure.

Compliance and Transitional Payment Process

For the year 2025, financial entities subject to DORA are required to submit a category declaration between October 2 and October 31, providing detailed information on employee numbers, turnover, and balance sheet metrics. Entities must also remit the annual fee by December 31, 2025, with the amount being calculated pro rata for the period from August 15 to December 31.

Enhancing Institutional Independence and Market Integrity

Dr. George Theocharidis, President of the Capital Markets Authority, emphasized that the DORA regulation extends its impact beyond traditional supervision, necessitating a robust funding model to meet increasing regulatory obligations. The adjustment aligns with DORA’s proportionality criteria and supports the Ministry of Finance’s objective to reduce the Authority’s reliance on state funding. This move not only bolsters the independence of the regulatory body but also reinforces market integrity.

Mortgage And Business Loan Rate Dynamics Among Cyprus Banks

Stable Mortgage Loan Rates Post-Mergers

Recent consolidations in the Cyprus banking sector have led to a striking uniformity in mortgage loan interest rates. For example, data from November 2025 reveal that Bank of Cyprus, Eurobank Ltd, and Ancoria Bank are all offering an average rate of 2.98%. Alpha Bank even offers a marginally lower rate of 2.81% for home purchases, whereas smaller market players continue to provide loans at higher costs.

Differentiated Business Loan Offerings

In contrast, business loan interest rates demonstrate greater variability. For loans up to €1 million, Alpha Bank offers the most competitive rate at 3.31%, followed by the National Bank of Greece (Cyprus) at 3.78% (NBG Cyprus). Eurobank Ltd, Kyprian Bank of Development, and Bank of Cyprus post higher averages at 4.00%, 4.46%, and 4.47% respectively, while Societe Generale Bank Cyprus and Banque SBA register even steeper rates at 6.05% and 6.54%.

For loans exceeding €1 million, the trend remains similar: Alpha Bank leads with 3.64%, trailed by National Bank of Greece (Cyprus) at 3.99% and Bank of Cyprus at 4.18%. Eurobank Ltd and Kyprian Bank of Development follow with rates of 4.54% and 4.30%, whereas Societe Generale Bank Cyprus stands out with an average rate of 6.23%.

Competitive Deposit Rates Reflect High Liquidity

Deposits in Cyprus are offered at some of the lowest interest rates in the Eurozone, a situation that reflects the exceptionally high liquidity across the local banking systems. With a Liquidity Coverage Ratio (LCR) recorded at 319% in November 2025, well above the Eurozone median of 191%, major institutions such as Bank of Cyprus, Eurobank Ltd, and Alpha Bank feature household deposit averages of 0.67%, 1.11%, and 1.36% respectively.

Meanwhile, smaller banks including Ancoria Bank, National Bank of Greece (Cyprus), and Kyprian Bank of Development report higher deposit rates of 1.47%, 1.49%, and 1.25% respectively. For business term deposits (up to one year), Ancoria Bank offers the highest average rate at 1.51%, closely followed by Alpha Bank at 1.43%. Other institutions maintain averages between 1.12% and 1.42%, underscoring a competitive yet stratified market landscape.

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