One of the Central Bank of Iceland’s main tasks is to promote a safe, stable, and efficient financial system. Financial stability prevails when there is no interruption or significant disturbance of financial system operations, and when the financial system is resilient enough to tolerate shocks and imbalances without significant adverse effects on movement of capital, intermediation of payments, and distribution of risk. A healthy financial system is a prerequisite for stability, output growth, and effective monetary policy. Each quarter the Bank‘s Financial Stability Department conducts an in-depth appraisal of the macroeconomic environment, financial markets and financial institutions. Semi-annually the results are published in the Bank‘s Financial Stability report.