Securities eligible as collateral

Cent­ral Bank of Ice­land coun­ter­parties and par­ti­cipants in the Bank’s in­ter­b­ank pay­ment sys­tem may provide se­cur­it­ies as col­lat­eral for au­thor­ised lim­its in pay­ment sys­tems and as se­cur­ity for col­lat­er­al­ised loans when these are avail­able.

Se­cur­it­ies eli­gible as col­lat­eral for Cent­ral Bank fa­cil­it­ies are sub­ject to the pro­vi­sions of Rules no. 1200/2019 (Iceland­ic), with sub­sequent amend­ments.

Set­tle­ment col­lat­eral in the form of se­cur­it­ies provided for par­ti­cip­a­tion in pay­ment sys­tems is sub­ject to the Cent­ral Bank rules on in­ter­b­ank pay­ment sys­tems as cur­rent at any given time; i.e., Rules no. 1030/2020 (Iceland­ic).

The Cent­ral Bank re­serves the right to re­view its de­cision on eli­gib­il­ity of spe­cified se­cur­it­ies in light of the con­di­tions pre­vail­ing at any given time.

Eli­gible se­cur­it­ies for fa­cil­it­ies and pay­ment sys­tems (up­dated weekly)

Eli­gible se­cur­ites for fa­cil­it­ies and pay­ment sys­tems ( up­dated weekly).csv

In the valu­ation of se­cur­it­ies as fin­an­cial col­lat­eral for Cent­ral Bank fa­cil­it­ies and par­ti­cip­a­tion in pay­ment sys­tems, a hair­cut shall be cal­cu­lated on the ref­er­ence price ac­cord­ing to the table be­low:

* If there is no mar­ket mak­ing with bonds, a 5% hair­cut is ad­ded.
** When an in­sti­tu­tion’s own se­cur­it­ies are used, a 5% hair­cut is ad­ded.
*** Term de­pos­its in pay­ment sys­tems may only be used for the min­imum in­tra­day bal­ance.

If ne­ces­sary – for ex­ample, due to mar­ket con­di­tions – the Cent­ral Bank may cal­cu­late fur­ther de­duc­tions or hair­cuts. The Cent­ral Bank re­serves the right to re­ject an ap­plic­a­tion for fa­cil­it­ies if no agree­ment can be reached on the pri­cing of col­lat­er­al.