The Central Bank of Iceland has decided to amend the Rules on Maximum Debt Service-to-Income Ratios for Mortgage Loans to Consumers, no. 1130/2025, and to adopt two sets of new rules; one on oversight of systemically important financial market infrastructure and the other on a financial infrastructure incident centre. The aforementioned amendments and rules were approved at a meeting of the Financial Stability Committee (FSN) on 1-2 December; cf. the Committee’s statement published today.
Amendment to the Rules on Maximum Debt Service-to-Income Ratios on Consumer Mortgages
The Financial Stability Committee of the Central Bank of Iceland approved amendments to the Rules on Maximum Debt Service-to-Income Ratios on Consumer Mortgages. The amendments specify that the calculation of the maximum debt service burden shall include all payments accruing to individuals for the acquisition of residential property. The amendments therefore specify that when an individual owns a residential property jointly with an entity that owns or retains a holding in that property for commercial purposes, the assessment of debt service shall include payments made by the individual to the other entity for use of the latter’s share in the property, irrespective of when such payments are remitted.
The Rules will be amended accordingly and reissued under their current title. The Rules will be published on the website of the Law and Ministerial Gazette [Stjórnartíðindi] later today and will take effect tomorrow, 4 December 2025.
Rules on oversight of systemically important financial market infrastructure and rules on a financial infrastructure incident centre
The rules on oversight of systemically important financial market infrastructure lay down the criteria underlying the Financial Stability Committee’s assessment of which financial market infrastructure components shall be considered systemically important and of such a nature that their activities could affect financial stability. The rules also contain provisions on how the Bank shall conduct oversight of the operational framework of such infrastructure. According to the rules, systemically important infrastructure falls into two categories: critical infrastructure and core infrastructure.
The rules on a financial infrastructure incident centre define the role of the centre and its participants. The incident centre is intended to play a key role in ensuring swift and secure exchange of information and a harmonised response to cyber- and operational incidents.
The rules are adopted in the interest of enhanced financial system resilience, including increased operational security in payment intermediation. The Bank plans to publish the rules on the website of the Law and Ministerial Gazette [Stjórnartíðindi] within a few days. They will take effect on the day after publication.