RegAlert2026-03-24
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Minutes of the Financial Stability Committee Meeting of 23-24 March 2026
The Financial Stability Committee reviewed developments in the Icelandic economy, financial stability risks, and the impact of the Persian Gulf war on financial markets. The Committee focused on the real estate market, including residential housing and construction, following amendments to borrower-based measures after Supreme Court judgments in late 2025, and discussed a new housing affordability indicator. Additionally, the Committee examined pension fund investment strategies, private sector indebtedness, bank resilience under the EU’s third Capital Requirements Regulation, financial market infrastructure resilience, and the framework for deposit insurance in Iceland.
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Minutes of the Financial Stability Committee meeting of 23.-24. March 2026 financial stability committee fsn minutes financial stability Listen
The Financial Stability Committee
The Financial Stability Committee (FSN) of the Central Bank of Iceland takes decisions on the application of the Bank’s financial stability policy instruments. Financial stability means that the financial system is equipped to withstand shocks to the economy and financial markets, to intermediate credit and payments, and to diversify risks appropriately.
At its meeting of 23 and 24 March 2026, the Committee was given a presentation on developments and prospects for the economy and for financial stability. Members discussed the risks to financial stability in Iceland and developments internationally. They reviewed developments in domestic and foreign financial markets, including the impact and potential repercussions of the Persian Gulf war. The pension funds’ investment strategies for 2026 were presented to the Committee. The status of the real estate market was the focal point of the meeting, with emphasis on the residential housing market, the construction sector, and developments since the FSN amended borrower-based measures in response to the Supreme Court judgments in the so-called interest rate cases in late 2025. Members discussed a new indicator of housing affordability. They also discussed private sector indebtedness and financial institutions’ resilience, including their capital and liquidity positions. The Committee was given a presentation on the implementation of the EU’s third Capital Requirements Regulation (CRR III) and its impact on the banks’ risk exposure. The Committee was also given a presentation on work done by the Bank to bolster the resilience of financial market infrastructure, together with a timetable for measures such as the introduction of offline card-based payments. Furthermore, the FSN was given a presentation on a recent contingency exercise focusing on a simulated operational incident affecting financial infrastructure. In addition, the FSN discussed the framework for deposit insurance in Iceland.
Minutes of the Financial Stability Committee meeting of 23.-24. March 2026. 30th meeting. Published 29. April 2026.
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Source: Central Bank of Iceland — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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