The Central Bank of Iceland published the minutes of its Financial Stability Committee meeting of 2 and 3 June 2025, where the Committee decided to keep the countercyclical capital buffer (CCyB) unchanged at 2.5% and set out priorities for strengthening the resilience of Iceland’s payment intermediation. The CCyB level was maintained at the upper end of the 2-2.5% range defined by the Committee as the neutral buffer rate. The discussions covered key domestic and global risks to financial stability, including developments in domestic financial markets, private sector indebtedness, the real estate market, and financial institutions’ resilience, including capital and liquidity positions, as well as borrower-based measures, the Central Bank’s policy on payment intermediation, and the structure of the Bank’s liquidity facilities. The Committee also reviewed the outlook for the balance of payments and Iceland’s external position, examined the status of construction companies and banking system lending to the sector, and received an update on investment and project financing in land-based aquaculture. On payments, it underscored the need for secure, effective, efficient, and accessible financial market infrastructure and pointed to ongoing work on alternate solutions, including an independent domestic retail payment solution and an offline payment card solution.
Central Bank of Iceland 2025-07-02
Central Bank of Iceland publishes Financial Stability Committee minutes confirming countercyclical capital buffer unchanged at 2.5%
The Central Bank of Iceland's Financial Stability Committee decided to maintain the countercyclical capital buffer at 2.5% and outlined priorities to enhance the resilience of Iceland’s payment intermediation. Discussions included domestic and global financial stability risks, the real estate market, financial institutions' resilience, and the need for secure and efficient financial market infrastructure.