If there is a difference between the presentation of the text below and in the PDF document, the PDF document applies.

No. 1588/2025

15 December 2025

RULES

on the assessment of interest rate risk from non-trading book business.

Article 1. Scope.

These rules apply to financial undertakings under the Act on Financial Undertakings, No. 161/2002.

Article 2. Assessment of interest rate risk.

Supervisory shock scenarios, common modelling and parametric assumptions for calculating the economic value of equity and what constitutes a significant decline in net interest income, cf. the fifth paragraph of Article 81 of Act No. 161/2002 on Financial Undertakings, shall be in accordance with Regulation (EU) 2024/856, cf. Article 3.

When assessing the risk arising from potential interest rate changes that affect both the economic value of equity and net interest income from non-trading book business, as calculated pursuant to Article 78 f of the Act on Financial Undertakings, a financial undertaking shall take into account Regulation (EU) 2024/857, as amended, cf. Article 3.

Article 3. Implementation of regulations.

With reference to Article 2, the following regulations apply in this country:

• Commission Delegated Regulation (EU) 2024/856 of 1 December 2023 supplementing Directive 2013/36/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the supervisory shock scenarios, the common modelling and parametric assumptions and what constitutes a large decline, which was incorporated into the EEA Agreement by Decision of the EEA Joint Committee No. 214/2024 of 23 September 2024.

• Commission Delegated Regulation (EU) 2024/857 of 1 December 2023 supplementing Directive 2013/36/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying a standardised approach and a simplified standardised approach for the assessment of the risk arising from potential changes in interest rates that affect both the economic value of equity and the net interest income of an institution's non-trading book activities, which was incorporated into the EEA Agreement by Decision of the EEA Joint Committee No. 214/2024 of 23 September 2024.

• Commission Delegated Regulation (EU) 2025/1275 of 17 March 2025 correcting certain language versions of Delegated Regulation (EU) 2024/857 supplementing Directive 2013/36/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying a standardised approach and a simplified standardised approach for the assessment of the risk arising from potential changes in interest rates that affect both the economic value of equity and the net interest income of an institution's non-trading book activities, which was incorporated into the EEA Agreement by Decision of the EEA Joint Committee No. 241/2025 of 24 October 2025.

With reference to the authorisation in the transitional provision III of Act No. 161/2002 on Financial Undertakings, the Central Bank of Iceland refers to the publication of the English version of Commission Regulations (EU) 2024/856, 2024/857 and 2025/1275 in the Official Journal of the European Union:

• https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A32024R0856, published in OJ series L, subseries R, 2024/856, on 24 April 2024;

• https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A32024R0857, published in OJ series L, subseries R, 2024/857, on 24 April 2024;

• https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32025R1275, published in OJ series L, subseries R, 2025/1275, on 27 June 2025.

Article 4. Entry into force.

These rules, which are issued with the authorisation in the sixth item of the first paragraph of Article 117 b of the Act on Financial Undertakings, No. 161/2002, enter into force immediately. Upon their entry into force, Rules No. 1341/2024 on the assessment of interest rate risk from non-trading book business shall be repealed.

Central Bank of Iceland, 15 December 2025.
Ásgeir Jónsson governor.
Gísli Óttarsson managing director.

Section B — Publication date: 5 January 2026