Iceland: Report on Observance of Standards and Codes (ROSC)
IMF Staff Country Reports, September 3, 2014
Source details
- Canonical URL
- Iceland: Report on Observance of Standards and Codes (ROSC)
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Bibliographic details
- Published: September 3, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498380560.002
Overview
- This Report on Observance of Standards and Codes on Iceland summarizes the findings and recommendations of the assessment.
- The assessment of the current state of the implementation of the Basel Core Principles for Effective Banking Supervision in Iceland was completed as a stand-alone Report on the Observance of Standards and Codes undertaken by the IMF during March of 2014 at the request of the Icelandic authorities.
- Publication date on the landing page: September 3, 2014.
- Series: IMF Staff Country Reports.
Key Findings
- The assessment evaluates implementation of the Basel Core Principles for Effective Banking Supervision in Iceland.
- Identified needs to clarify roles and actions of supervisory authorities regarding liquidity risk and enforcement of buffers.
- Noted limitations in the use of the definition of "qualified holder," currently applied beyond mere quantitative thresholds.
- Identified a need for clearer benchmarks, standards, and procedures for assessing the adequacy of banks’ risk management and governance systems.
Policy Recommendations
- Ensure planned legislative amendments clarify the roles regarding banking supervision of liquidity risk, including corrective action.
- Ensure planned legislative amendments clarify Financial Supervisory Authority in Iceland (FME) actions in the enforcement of buffers.
- Amend processes, systems and practices in order to use the full definition of qualified holder, beyond the mere quantitative thresholds.
- Develop rules and guidelines for banks on the benchmarks, standards, and procedures that the FME will follow in determining the adequacy of bank’s risk management and governance systems.
Subjects and Keywords
- Subjects: Bank risk management; Bank supervision; Banking; Basel Core Principles; Commercial banks; Financial institutions; Financial regulation and supervision; Legal support in revenue administration; Revenue administration.
- Keywords: Bank risk management; Bank supervision; banking sector; Basel Core Principles; business plans; Commercial banks; corporate governance; CR; financial system; FME authority; FME decision making process; FME focus; FME methodology; FME monitor; FME onsite work; FME supervision; Global; interest rate; ISCR; Legal support in revenue administration; reform program.