The Central Bank of Iceland released the minutes of its Financial Stability Committee meeting held on 28 November and 1-2 December 2025, setting out the Committee’s review of key risks to financial stability and issues relevant to the application of financial stability policy instruments. The Committee received a presentation on economic and financial stability developments and discussed global conditions. The agenda included developments in domestic and foreign financial markets, pension funds’ investment strategies, private sector indebtedness, the real estate market, and the resilience of financial institutions including capital and liquidity positions. It also discussed scenarios for the Central Bank’s year-2026 stress test on the systemically important banks, borrower-based measures including in relation to four real estate firms’ and funds’ participation in individuals’ home purchases, an updated assessment of which credit institutions are considered systemically important, and cyber and operational security issues including oversight of systemically important financial market infrastructure.