The minutes for the meet­ing of the Fin­an­cial Sta­bil­ity Com­mit­tee in September 2025

The minutes for the meet­ing of the Fin­an­cial Sta­bil­ity Com­mit­tee from 22 and 23 September 2025 have been pub­lished.

At its meeting of the Committee was given a presentation on developments and prospects for the economy and for financial stability. Members discussed key risks to financial stability in Iceland, as well as global developments. Among other topics, they reviewed developments in domestic financial markets, private sector indebtedness, the real estate market, and financial institutions' resilience, including their capital and liquidity positions. In addition, members discussed the Central Bank's most recent stress test of the systemically important banks, which this time was based on assumptions comparable to those used by the European Banking Authority (EBA) in its stress test. They also discussed the Bank's financial stability policy formulation. The FSN was given a presentation on Iceland's fiscal debt position and on international developments in the bond markets. It was also given a presentation on the involvement of real estate firms and funds in individuals' house purchases and the impact that court cases on variable-rate mortgage terms could potentially have on the commercial banks. The FSN discussed the updated assessment of which credit institutions were considered systemically important. Furthermore, it was given a presentation on factors pertaining to cyber- and operational security in the financial market.

The FSN decided to hold the countercyclical capital buffer (CCyB) unchanged at 2.5%, which is the upper end of the 2-2.5% boundary defined by the FSN as the neutral buffer rate. Geopolitical uncertainty is still pronounced, and there are concerns about fiscal sustainability in many advanced economies. The Committee underscored the importance of maintaining financial institutions' resilience and holding sizeable international reserves.