29 March 2021

Countercyclical capital buffer held unchanged

The Financial Stability Committee of the Central Bank of Iceland

The Central Bank of Iceland Financial Stability Committee (FSN) has decided to hold the countercyclical buffer on financial institutions unchanged. In the Committee’s opinion, no clear signs of increased cyclical systemic risk have come to the fore, and there is still some uncertainty about the quality of the financial institutions’ loan portfolios due to the impact of the pandemic.

The countercyclical capital buffer is reviewed on a quarterly basis, and decisions to increase it generally do not take effect until twelve months later.

The FSN statement will be published on 14 April 2021.

Accompanying document:
Background to the decision on the countercyclical capital buffer, 24 March 2021.

Press release no. 9/2021
29 March 2021