Financial system

The department keeps abreast of the developments in the financial system in Iceland and abroad, as well as gauging its strengths and effectiveness and assessing the effects of economic factors on the system as a whole. The tasks of central banks in this field differ from conventional financial supervisory functions in that, instead of primarily monitoring individual financial institutions, they focus on factors that could entail risks for the financial system as a whole. In order to contribute to strong foundations and the health of the financial system, the Central Bank and the Financial Supervisory Authority have concluded a cooperation agreement.