12 April 2023

Minutes of the Financial Stability Committee meeting of 13-14 March

The Financial Stability Committee of the Central Bank of Iceland takes decisions on the application of the Bank’s financial stability policy instruments. At the meeting The Committee discussed the outlook for and principal risks to financial stability, such as economic developments, risks to the financial institutions and the financial system, developments in domestic financial markets, household and corporate debt, the real estate market, the efficacy of borrower-based measures, financial institutions’ capital and liquidity position, and the financial cycle. The Committee also discussed cybersecurity and received information on the TIBER project and measures to strengthen cybersecurity in payment intermediation.

As said in the Committee‘s statement on March 15, it decided to increase the countercyclical capital buffer (CCyB) rate from 2% to 2.5% of the domestic systemically important banks’ (D-SIB) domestic risk base. The decision will take effect on 15 March 2024.

The Committee also stressed the importance of establishing an independent domestic retail payment rails and selecting a solution within a year.

See the minutes here: Minutes of the Financial Stability Committee meeting (16th meeting). Published 12 April 2023.

See further information on the committee here: Financial Stability Committee