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 (available here).

The Icelandic financial system is resilient. The systemically important banks’ capital and liquidity are strong, and they have ready access to market-based funding. The banks have taken advantage of favourable conditions to obtain increased long-term foreign funding and retire debt taken on less favourable terms. Their refinancing risk has therefore receded, and the banking system appears well prepared to withstand unexpected shocks.

A state­ment of the Fin­an­cial Sta­bil­ity Com­mit­tee will be pub­lished at 8:30 to­mor­row, Wed­nes­day 3 December 2025.

The minutes of the Central Bank of Iceland's Financial Stability Committee meeting for October 31, 2025 have been published. The Committee was of the view that significant uncertainty prevailed in the housing market following the Supreme Court judgment in Case no. 55/2024. In particular, the position of first-time buyers and lower-income buyers appeared to have worsened. Three amendments to the Bank’s borrower-based measures made.