Financial undertakings operate in compliance with Act No. 161/2002 on Financial Undertakings (in Icelandic). The function of the Central Bank of Iceland is inter alia to have foresight and a risk-oriented supervision of the activities of financial undertakings, in particular with regard to the main risk factors.
In this way, the Central Bank contributes to their financial health, sound and proper business practices, and ensures that households and undertakings have continuous access to sound financial services.