{
  "title": "Iceland: Financial Sector Assessment Program-Technical Note on Detailed Assessment on Basel Core Principles for Effective Banking Supervision",
  "publication": "IMF Staff Country Reports, July 28, 2023",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2023/07/26/iceland-financial-sector-assessment-program-technical-note-on-detailed-assessment-on-basel-537051",
  "canonical": "https://www.imf.org/en/publications/cr/issues/2023/07/26/iceland-financial-sector-assessment-program-technical-note-on-detailed-assessment-on-basel-537051",
  "overlayPath": "/en/publications/cr/issues/2023/07/26/iceland-financial-sector-assessment-program-technical-note-on-detailed-assessment-on-basel-537051/index.md",
  "summary": "This paper for Iceland presents Detailed Assessment on Basel Core Principles (BCP) for Effective Banking Supervision. The Ministry of Finance and Economic Affairs/parliamentary budgetary processes that is a legacy funding structure from the prior Fjármálaeftirlit hamper Central Bank of Iceland’s (CB",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Presents Detailed Assessment on Basel Core Principles (BCP) for Effective Banking Supervision for Iceland.\n- Notes that the Ministry of Finance and Economic Affairs/parliamentary budgetary processes, a legacy funding structure from the prior Fjármálaeftirlit, hamper Central Bank of Iceland’s (CBI) ability to access funding for banking regulation and supervision.\n- Reports that key legislative amendments have been enacted in the banking laws to ensure Iceland’s compliance with the European Union’s regulatory framework for banking supervision."
    },
    {
      "heading": "Capital, Liquidity, and Risk Profile",
      "content": "- CBI implements a conservative approach to both capital and liquidity requirements.\n- Result: highly capitalized and adequate liquidity levels for banks.\n- Identifies market risk, credit risk, and operational risk among subject matters assessed."
    },
    {
      "heading": "Supervisory Capacity and Resourcing",
      "content": "- CBI/Financial Supervisory Authority’s current complement of banking supervisors, including risk specialists, is strong.\n- However, a few risk areas need augmentation."
    },
    {
      "heading": "AML/CFT Framework and Implementation",
      "content": "- CBI’s banking supervisory and regulatory framework pertaining to Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) requirements is considered adequate.\n- CBI has made great efforts to build up expertise in AML/CFT to implement a risk based supervisory assessment model for banks.\n- CBI has carried out deep on-site inspections to assure itself of the effectiveness of banks’ risk management practices regarding compliance with applicable AML/CFT legislative and supervisory requirements."
    },
    {
      "heading": "Summary of Subject Coverage",
      "content": "- Bank supervision\n- Credit risk\n- Financial regulation and supervision\n- Financial sector policy and analysis\n- Financial stability assessment\n- International organization\n- Market risk\n- Monetary policy\n- Operational risk"
    },
    {
      "heading": "Keywords Highlighted",
      "content": "- adequacy ASSESSMENT program\n- ASSESSMENT methodology\n- Baltics\n- Bank supervision\n- banking authority\n- Basel committee\n- Credit risk\n- Financial stability assessment\n- Global\n- Market risk\n- Operational risk\n- risk management"
    },
    {
      "heading": "Key statistics and identifiers",
      "content": "- Pages: 299\n- Volume: 2023\n- Issue: 283\n- DOI: https://doi.org/10.5089/9798400252310.002\n- ISBN: 9798400252310\n- ISSN: 1934-7685\n\nIceland: Financial Sector Assessment Program-Technical Note on Detailed Assessment on Basel Core Principles for Effective Banking Supervision\n\n---\n\n Content in this bundle\n\n- 1islea2023010\n  - 1islea2023010 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1islea2023010 (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/cr/issues/2023/07/26/iceland-financial-sector-assessment-program-technical-note-on-detailed-assessment-on-basel-537051/index.md)",
    "[Structured JSON version](/en/publications/cr/issues/2023/07/26/iceland-financial-sector-assessment-program-technical-note-on-detailed-assessment-on-basel-537051/index.json)",
    "[Bundle manifest](/en/publications/cr/issues/2023/07/26/iceland-financial-sector-assessment-program-technical-note-on-detailed-assessment-on-basel-537051/bundle-manifest.json)",
    "Published: July 28, 2023",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798400252310.002",
    "Presents Detailed Assessment on Basel Core Principles (BCP) for Effective Banking Supervision for Iceland.",
    "Notes that the Ministry of Finance and Economic Affairs/parliamentary budgetary processes, a legacy funding structure from the prior Fjármálaeftirlit, hamper Central Bank of Iceland’s (CBI) ability to access funding for banking regulation and supervision.",
    "Reports that key legislative amendments have been enacted in the banking laws to ensure Iceland’s compliance with the European Union’s regulatory framework for banking supervision.",
    "CBI implements a conservative approach to both capital and liquidity requirements.",
    "Result: highly capitalized and adequate liquidity levels for banks.",
    "Identifies market risk, credit risk, and operational risk among subject matters assessed.",
    "CBI/Financial Supervisory Authority’s current complement of banking supervisors, including risk specialists, is strong.",
    "However, a few risk areas need augmentation.",
    "CBI’s banking supervisory and regulatory framework pertaining to Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) requirements is considered adequate.",
    "CBI has made great efforts to build up expertise in AML/CFT to implement a risk based supervisory assessment model for banks.",
    "CBI has carried out deep on-site inspections to assure itself of the effectiveness of banks’ risk management practices regarding compliance with applicable AML/CFT legislative and supervisory requirements.",
    "adequacy ASSESSMENT program",
    "ASSESSMENT methodology",
    "Baltics",
    "banking authority",
    "Basel committee",
    "Global",
    "risk management",
    "Pages: 299",
    "Volume: 2023",
    "Issue: 283",
    "DOI: https://doi.org/10.5089/9798400252310.002",
    "ISBN: 9798400252310",
    "ISSN: 1934-7685",
    "**1islea2023010**"
  ],
  "related": [
    {
      "title": "1islea2023010",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/cr/2023/english/1islea2023010.pdf",
      "summary": {
        "path": "/-/media/files/publications/cr/2023/english/1islea2023010.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/cr/2023/english/1islea2023010.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/cr/issues/2023/07/26/iceland-financial-sector-assessment-program-technical-note-on-detailed-assessment-on-basel-537051/index.md",
    "json": "/en/publications/cr/issues/2023/07/26/iceland-financial-sector-assessment-program-technical-note-on-detailed-assessment-on-basel-537051/index.json",
    "bundleManifest": "/en/publications/cr/issues/2023/07/26/iceland-financial-sector-assessment-program-technical-note-on-detailed-assessment-on-basel-537051/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-11T21:01:12.731Z"
}