The Central Bank of Iceland has published Financial Stability Committee minutes recording its unanimous decision at the Sept. 21-22, 2026, meeting to retain the countercyclical capital buffer at 2.5% of domestic exposures. The decision, previously announced on Sept. 23, keeps the buffer at the upper end of the committee’s established neutral range of 2% to 2.5%, which applies when financial system risk is neither unusually high nor unusually low. The committee reviewed household and business finances, housing and construction conditions, and financial institutions’ capital and liquidity. Its capital policy discussions covered overall requirements for systemically important banks, the designation of systemically important financial institutions and the European Commission’s proposals for simplifying capital buffers. Members also received presentations on the bank’s draft financial stability and macroprudential policy strategy and stablecoins’ potential effects on financial stability.
Central Bank of Iceland publishes minutes recording unanimous decision to retain 2.5% countercyclical capital buffer
The Central Bank of Iceland’s September meeting minutes record the unanimous decision, previously announced on Sept. 23, to keep the countercyclical capital buffer at 2.5% of domestic exposures, the top of its neutral range. Discussions also addressed bank capital requirements, a draft financial stability and macroprudential policy strategy, and stablecoins’ potential impact on financial stability.