{
  "title": "Iceland: Financial Sector Assessment Program-Technical Note on Macroprudential Policy",
  "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-macroprudential-policy-537028",
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  "summary": "This technical note highlights macroprudential policy in Iceland. Macroprudential policy in Iceland recently has centered on the property market, given the importance of this market for households’ balance sheets, banks’ loan portfolios, and the potential systemic risks.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Publication date: July 28, 2023\n- Core focus: Macroprudential policy in Iceland, with recent emphasis on the property market due to its importance for households’ balance sheets, banks’ loan portfolios, and potential systemic risks.\n- Key conclusion: The Central Bank of Iceland (CBI) has a strong institutional framework and analytical capacity for macroprudential policy, but data gaps and model enrichment opportunities remain; authorities should remain ready to act further if vulnerabilities persist."
    },
    {
      "heading": "Institutional framework and powers",
      "content": "- Findings:\n  - The CBI has a strong institutional framework for macroprudential policy, assuring the willingness to act.\n  - The macroprudential framework promotes the ability to act promptly.\n  - As the financial supervisor, the CBI controls prudential tools and may exercise its power as necessary to ensure financial stability.\n  - Institutional arrangements encourage effective cooperation and coordination with other institutions."
    },
    {
      "heading": "Surveillance, analytics, and data",
      "content": "- Findings:\n  - CBI surveillance and systemic risk assessment rely on comprehensive quantitative information and constructive dialogue with the industry.\n  - The CBI employs various models and stress tests for systemic risk monitoring.\n  - The strong analytical capacity can be further enhanced by filling data gaps and enriching models."
    },
    {
      "heading": "Recent measures and policy stance",
      "content": "- Findings and guidance:\n  - Recent macroprudential measures target the property market and are described as going in the right direction.\n  - Recommendation: Authorities should stand ready to take further actions if vulnerabilities persist."
    },
    {
      "heading": "Subjects and keywords (as stated in the source)",
      "content": "- Subject: Financial institutions, Financial sector policy and analysis, Financial sector stability, International organization, Loans, Macroprudential policy, Monetary policy, Mortgages, Systemic risk\n- Keywords: Baltics, capital markets department, CBI share, Financial sector stability, Global, house price misalignment, housing market Mispricing, Loans, Macroprudential decision making, Macroprudential policy, Mortgages, Systemic risk\n\n---\n\n Content in this bundle\n\n- 1islea2023006\n  - 1islea2023006 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1islea2023006 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: July 28, 2023",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798400249457.002",
    "Publication date: July 28, 2023",
    "Core focus: Macroprudential policy in Iceland, with recent emphasis on the property market due to its importance for households’ balance sheets, banks’ loan portfolios, and potential systemic risks.",
    "Key conclusion: The Central Bank of Iceland (CBI) has a strong institutional framework and analytical capacity for macroprudential policy, but data gaps and model enrichment opportunities remain; authorities should remain ready to act further if vulnerabilities persist.",
    "Findings:",
    "Findings:",
    "Findings and guidance:",
    "Subject: Financial institutions, Financial sector policy and analysis, Financial sector stability, International organization, Loans, Macroprudential policy, Monetary policy, Mortgages, Systemic risk",
    "Keywords: Baltics, capital markets department, CBI share, Financial sector stability, Global, house price misalignment, housing market Mispricing, Loans, Macroprudential decision making, Macroprudential policy, Mortgages, Systemic risk",
    "**1islea2023006**"
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