01 November 2023

Minutes of the Financial Stability Committee meeting of September 2023

The Financial Stability Committee
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 of 18 and 19 September 2023, presentations were given on economic developments and prospects and the state of the financial system and payment intermediation infrastructure. The Committee discussed the current situation and outlook for financial stability and the principal risks to financial stability, such as economic developments, risks in the operations of 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 FSN was also given a presentation on the methodology for designating systemically important financial institutions (D-SIB) and a presentation on the results of the annual stress test on the D-SIBs.

The FSN decided to keep the countercyclical capital buffer (CCyB) rate unchanged. In accordance with the Committee’s March 2023 decision, the CCyB will increase from 2% to 2.5% on 15 March 2024.

See the minutes here: Minutes of the Financial Stability Committee meeting (18th meeting). Published 1 November 2023.

See further information on the committee here: Financial Stability Committee