Content from before 2020

The role of the Financial Stability Council changed on 1 January 2020 with the merger of the Central Bank and the Financial Supervisory Authority. Before the merger, the Council had sent recommendations to the Financial Supervisory Authority and given an opinion on the Authority’s rules on the maximum loan-to-value ratio. The recommendations and the opinion, as well as minutes and press releases relating to meetings before 1 January 2020, can be found on this page.

The table shows the capital buffers in effect in Iceland as of 1 January 2020 (The countercyclical buffer will be raised by 0.25% on 1 February 2020). The capital buffers are in addition to general capital adequacy requirements.

* A capital conservation buffer is applied pursuant to Art. 86 e of Act No. 161/2002; the Central Bank does not issue rules on this buffer.

** Savings banks Sparisjóður Austurlands, Höfðhverfinga, Strandamanna and Suður-Þingeyinga.

*** Borgun hf., the Institute of Regional Development, Municipal Credit ohf., Lykill fjármögnun hf. and Valitor hf.

Authorisation to set rules for maximum LTV ratios and maximum amounts for real estate mortgages or their debt service relative to consumer income was granted to FME under Act No. 118/2016, on Consumer Mortgages, after the Financial Stability Council had given its opinion. The authorisation entered into force on 1 April 2017 and such rules were first issued on 20 July 2017. The Financial Stability Council gave an opinion on those rules at its meeting on 20 June of the same year.