Rules on the Implementation of EU Regulations under the CRR and on the Application of Options and Discretions

30 December 2025
Ref.: 2506154

Circular no.: 32/2025
To financial undertakings and the Association of Companies in Financial Services

Subject: Rules on the implementation of regulations (EU) under the CRR and on the application of options and discretions

The Central Bank of Iceland draws attention to the fact that new rules on data reporting and information obligations of financial undertakings will be published in the Official Gazette today, 30 December. The rules are issued with the support of the second paragraph of Article 117 b of the Act on Financial Undertakings, no. 161/2002. The amendments take into account the amendments to Regulation (EU) no. 575/2013 (CRR) made by Regulation (EU) 2024/1623 (CRR III), which was implemented into the Act on Financial Undertakings by amending Act no. 102/2025.1

On the one hand, these are updated rules on data reporting by financial undertakings to implement Regulation (EU) 2024/3117 on technical implementing standards regarding the reporting of institutions to supervisory authorities under the CRR and repealing Regulation (EU) 2021/451 on the same subject, which was implemented by Rules no. 1345/2024 on data reporting by financial undertakings. With the new rules, the aforementioned Rules no. 1345/2024 are repealed.

On the other hand, these are updated rules on the information obligations of financial undertakings to implement Regulation (EU) 2024/3172 on technical implementing standards regarding the disclosure of information under the CRR and repealing Regulation (EU) 2021/637 on the same subject, which was implemented by Rules no. 772/2023 on the information obligations of financial undertakings. With the new rules, the aforementioned Rules no. 772/2023 are repealed.

The first monthly data reporting under the above amendments is 15 January 2026 and the first quarterly data reporting is 11 February 2026 (based on the position as of 31 December 2025) according to data model 4.1 (EBA DPM 4.1).

Attention is drawn to the fact that the entry into force of data model 4.2 (EBA DPM 4.2) has been postponed until 31 March 2026. The first monthly data reporting on the basis of that model will be 15 April 2026 and the first quarterly data reporting will be 12 May 2026. With the entry into force, the data reception format changes from XBRL-XML to XBRL-CSV and those data must be submitted in a .zip file, as the Central Bank will not accept data in JSON format.

Furthermore, new rules will be published on the application of options and discretions under the CRR, cf. the fourth paragraph of Article 117 of the Act on Financial Undertakings, but with their entry into force, Rules no. 789/2022 on the same subject are repealed. With the rules, credit institutions that have a licence to issue covered bonds are granted an exemption from the restrictions of point (e) of the first paragraph of Article 229 of the CRR when assessing the value of real estate that serves as collateral in a cover pool, cf. Article 3 of the rules. Thus, credit institutions may use the market value or the real estate assessment when assessing the value of assets

[1] ACT on amending the Act on Financial Undertakings, no. 161/2002 (CRR III). | Official Gazette

in a cover pool, instead of the average price of the asset over the last six to eight years or the original price of the asset, as provided for in Article 229 of the CRR. Also, the amount limits regarding large exposures to a client that is a financial undertaking have been raised from ISK 10 billion to ISK 15 billion, cf. Article 4 of the rules.

It is also drawn to attention that three other updated rules, issued on the basis of the Act on Financial Undertakings, will be published in the Official Gazette on 5 January 2026. These are new rules on the credit risk of financial undertakings, intended to implement Regulation (EU) 2025/855, new rules on the assessment of interest rate risk from non-trading book business, intended to implement Regulation (EU) 2025/1275, and new rules on the supervision of the use of internal approaches in the calculation of own funds requirements of financial undertakings, intended to implement Regulation (EU) 2025/379.

Technical inquiries regarding the implementation of data reporting may be directed to the Central Bank's service desk at the email address adstod@sedlabanki.is

Yours faithfully,
CENTRAL BANK OF ICELAND

Gísli Óttarsson
Managing Director
Prudential Supervision

Jónas Þór Brynjarsson
Head of Department
Prudential Supervision