Supervision

The role of the Central Bank of Iceland is to apply constructive and systematic restraint to regulated parties and to facilitate the development of efficient and sound financial operations, with an emphasis on the professional internal organisation of financial undertakings. The Central Bank performs its role by ensuring that the activities of regulated entities are in compliance with laws, regulations, rules and resolutions governing such activities, and that they are otherwise consistent with proper and healthy business practices.

The Central Bank also operates on the basis of international principles for effective supervision in each area of the financial market. At global level, there is an ever-increasing emphasis on the coordinated and efficient supervision of financial activities in individual countries. This is done in an effort to enhance the increased competitiveness of financial markets.

The main provisions regarding the Central Bank's supervision can be found in Chapter III of Act no. 87/1998 on the Official Supervision of Financial Activities, with subsequent amendments. In addition, the supervision and powers of the Central Bank are stipulated in the various laws, regulations and rules on activities in the financial sector, which can be found under "Legislation, Rules and Guidelines" on this site.