Meeting of the Financial Stability Council
The Financial Stability Council met on Thursday 6 April at the Ministry of Finance and Economic Affairs. The topic of the meeting was risk in the financial system and the macroeconomic outlook.
The Council decided to recommend that the Financial Supervisory Authority keep the countercyclical capital buffer on domestic exposures unchanged at 1.25%. The financial cycle has continued to rise at a pace broadly similar to that projected at the Systemic Risk Committee's last meeting. The Financial Stability Council can therefore be expected to recommend that the build-up of the countercyclical capital buffer continue in the coming term, in line with the financial cycle.
It was agreed that the Housing Financing Fund, Arion Bank hf., Landsbankinn hf., and Íslandsbanki hf. remain classified as systemically important supervised entities and that the capital buffer for systemically important financial institutions – i.e., the three banks – remain unchanged at 2%. A recommendation regarding this buffer was sent to the Financial Supervisory Authority.
The Financial Stability Council's next meeting will be held on 20 June 2017.
Further information about the meeting is available on the website of the Ministry of Finance and Economic Affairs.