Notification of an on-going capital buffer for other systemically important institutions and an unchanged countercyclical capital buffer
On 26 April 2017 the Financial Supervisory Authority of Iceland (FME) has notified, following recommendations from the Financial Stability Council and pursuant to Article 86(c) of Act no. 161/2002 on Financial Undertakings, that a 2% capital buffer for other systemically important institutions (O-SII) shall continue to apply to Arion banki hf., Islandsbanki hf. and Landsbankinn hf. The buffer shall be maintained on an individual and consolidated basis for all risk-weighted exposures.
Furthermore, the FME, following recommendations from the Financial Stability Council and pursuant to Article 86(d) of the Act on Financial Undertakings, notified that a CCyB buffer rate of 1.25 per cent shall continue to apply to financial undertakings on an individual and consolidated basis, unless exempt pursuant to the Act on Financial Undertakings.
Notification
of an on-going capital buffer for other systemically important institutions and
an unchanged countercyclical capital buffer
Further information on capital buffers can be found here.