## Iceland: Financial Sector Assessment Program-Technical Note on Financial Safety Net Crisis Management

_IMF Staff Country Reports, July 28, 2023_

## Source details

**Canonical URL:** [Iceland: Financial Sector Assessment Program-Technical Note on Financial Safety Net Crisis Management](https://www.imf.org/en/publications/cr/issues/2023/07/26/iceland-financial-sector-assessment-program-technical-note-on-financial-safety-net-crisis-537038)

## Other formats

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## Bibliographic details
- Published: July 28, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400251993.002

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### Overview
- Title: Iceland: Financial Sector Assessment Program-Technical Note on Financial Safety Net Crisis Management
- Publication date on landing page: July 28, 2023
- Core focus: financial safety net crisis management in Iceland.
- Scope summarized: assessment and recommendations regarding the different elements of the financial safety net in Iceland.

### Scope of the assessment
- Institutional arrangements for recovery, resolution, and crisis management.
- Oversight of banks’ recovery plans.
- Legal regime for bank bankruptcy and resolution.
- Resolution planning by the authorities.
- Funding mechanism to support resolution.
- Deposit guarantee scheme.
- Government authorities’ collective preparedness to deal with financial crises (including testing of plans).

### Key findings
- The current institutional framework for crisis management lacks formal involvement of the Ministry of Finance.
- The regime for banks that are systemic adheres to the internationally agreed resolution standards.
- The legal regime for bankruptcy and liquidation of banks that are not systemic is sound.
- The Deposit Guarantee Fund should be strengthened in line with EU requirements of the Deposit Guarantee Scheme Directive.
- The authorities’ collective contingency planning for financial crisis (including testing of plans) should be intensified.

### Policy recommendations and implications
- Formalize Ministry of Finance involvement within the institutional framework for crisis management.
- Maintain adherence to internationally agreed resolution standards for systemic banks.
- Preserve the legal framework supporting bankruptcy and liquidation for non-systemic banks.
- Strengthen the Deposit Guarantee Fund to align with the Deposit Guarantee Scheme Directive (EU requirements).
- Intensify collective contingency planning across government authorities, including regular testing of crisis plans.

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## Content in this bundle

- **1islea2023008**
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_Source: https://www.imf.org/en/publications/cr/issues/2023/07/26/iceland-financial-sector-assessment-program-technical-note-on-financial-safety-net-crisis-537038_