## 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)](https://www.imf.org/en/publications/cr/issues/2016/12/31/iceland-report-on-observance-of-standards-and-codes-rosc-41869)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/iceland-report-on-observance-of-standards-and-codes-rosc-41869/index.md)
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## Bibliographic details
- Published: September 3, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498380560.002

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### 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.

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/iceland-report-on-observance-of-standards-and-codes-rosc-41869_