Breaking news

Cyprus Central Bank To Raise Countercyclical Buffer Rate To 1.5% Amid Rising Systemic Risks

The Central Bank of Cyprus (CBC) has announced plans to raise the countercyclical buffer rate (CCyB) from 1% to 1.5%, with the change set to take effect on 14 January 2026. The decision, disclosed on 10 January 2025, aims to strengthen the resilience of the banking sector in light of growing systemic risks.

The CCyB is a regulatory tool that requires banks to maintain additional capital during periods of heightened economic risk. This buffer helps absorb potential losses, ensuring financial stability and the continuous flow of credit to the economy during times of stress.

Rising Risks Prompt Policy Action

The CBC’s quarterly assessment identified an uptick in systemic risks, driven by geopolitical developments, economic turbulence, and potential tail events in the global economy. Factors contributing to this heightened risk include:

  • Escalation of the Middle East conflict.
  • Continued globalization of the war in Ukraine.
  • Growing protectionist measures led to new trade restrictions.

These risks, according to the CBC, threaten the domestic macroeconomic environment and, by extension, the stability of the banking sector.

Broader Concerns At The EU Level

The CBC’s decision aligns with concerns raised by European institutions.

  • The European Systemic Risk Board (ESRB) highlighted in its December 2024 press release the need for enhanced resilience across the EU financial system amid heightened political uncertainty and geopolitical tensions.
  • The European Central Bank (ECB), in its Financial Stability Review, stressed the importance of ensuring banks maintain sufficient capacity to absorb losses during periods of economic stress.

Enhancing Resilience Through Increased Buffers

By raising the CCyB rate to 1.5%, the CBC aims to channel a portion of bank profits towards creating a larger buffer of loss-absorbing capital. This measure is intended to:

  • Strengthen the ability of banks to withstand potential crises.
  • Ensure the uninterrupted flow of credit to the real economy, even in times of economic stress.

The CBC emphasized that the previous rate of 1% was insufficient given the prevailing risk landscape and that the increased buffer will enhance the banking sector’s capacity to navigate future challenges.

This proactive adjustment reflects a broader commitment to safeguarding financial stability in Cyprus while aligning with EU-wide efforts to reinforce the financial system’s resilience.

Cloudflare Sets New Default To Separate Search Crawlers From AI Bots

Cloudflare has drawn a sharper line between traditional search and artificial intelligence.

Beginning September 15, 2026, the company will change its default settings to block so-called mixed-use crawlers from pages that run ads, unless a site owner chooses otherwise. The policy applies to new Cloudflare customers, new sites created by existing customers, and all current free customers.

A Clearer Divide In Web Access

The shift could materially reshape how AI companies collect web data for model training and agentic products. Cloudflare’s central argument is straightforward: most publishers want their content to remain visible in search and accessible through certain AI services, but they do not want that same material repurposed without compensation.

In Cloudflare’s view, the problem is not crawling itself. It is the blending of three different functions: search, agentic use, and training into a single bot that makes it difficult for website owners to set meaningful boundaries.

The Google Question

Cloudflare pointedly referenced the “world’s largest search engine,” an unmistakable nod to Google, arguing that it has access to roughly twice as much information as rival AI companies because it makes it harder for customers to stay discoverable without also being used for AI.

Google has disputed that framing. The company offers Google Extended, a crawler setting that lets publishers opt out of having content used for training and AI products such as Gemini apps and Vertex AI, without affecting visibility in Google Search. At the same time, Googlebot still crawls for Search and for AI-powered features such as AI Overviews and AI Mode.

Publishers Want Reach, Not Exploitation

Matthew Prince, Cloudflare’s co-founder and chief executive, said the company is moving quickly because the internet is now dominated by machine traffic.

“Now that the majority of traffic on the Internet is non-human, we must go further and act faster so that a sustainable ecosystem can emerge,” Prince said, referring to the recent milestone in which bots surpassed human traffic online sooner than expected.

Prince added that Cloudflare’s tools and partnerships are designed to give publishers more visibility and commercial leverage, while also rewarding AI companies that are transparent about how they use content.

From Pay Per Crawl To Pay Per Use

Cloudflare has increasingly positioned itself as a gatekeeper for publishers looking to assert control in the AI era. The company already offers tools to block AI bots, along with a marketplace called Pay Per Crawl, which lets websites charge AI systems for scraping.

That framework is now expanding into Pay Per Use, which Cloudflare says will allow publishers to charge AI companies when content creates value, not merely when it is fetched. In practical terms, that shifts the economics from extraction to monetization.

Cloudflare says the move may also reduce waste. Its data suggests more than half of crawl traffic from AI bots is spent revisiting pages that have not changed, consuming bandwidth and compute without adding fresh value for either side.

Early Partners Signal The Commercial Model

To launch the new system, Cloudflare is working with Ceramic.ai and You.com. Under the opt-in model, publishers can be paid when their content appears in Ceramic’s AI search results or when You.com accesses premium material.

Cloudflare says other AI companies can adapt the model to fit their own products. The broader message is clear: the era of unrestricted crawling is giving way to one in which access, attribution, and compensation are increasingly negotiated rather than assumed.

Aretilaw firm
The Future Forbes Realty Global Properties
eCredo
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter