Central Bank of Iceland publishes Financial Stability Committee minutes focused on housing market and infrastructure resilience

The Central Bank of Iceland has published the minutes of the Financial Stability Committee's 23 and 24 March 2026 meeting, showing the committee reviewing financial stability risks in Iceland and internationally. The real estate market was the main focus, particularly residential housing, the construction sector, and developments since borrower-based measures were amended after the Supreme Court's late-2025 judgments in the interest rate cases, while members also considered domestic and foreign market developments and the potential repercussions of the Persian Gulf war. Other discussions covered a new housing affordability indicator, private sector indebtedness, and financial institutions' resilience, including capital and liquidity positions. The committee also received updates on implementation of the European Union's third Capital Requirements Regulation, CRR III, and its effect on banks' risk exposure, work to strengthen financial market infrastructure including a timetable for measures such as offline card-based payments, a recent contingency exercise simulating an operational incident affecting financial infrastructure, pension funds' 2026 investment strategies, and Iceland's deposit insurance framework.