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Iceland: Financial Sector Assessment Program-Technical Note on Detailed Assessment on Basel Core Principles for Effective Banking Supervision
Author:
International Monetary Fund. Monetary and Capital Markets Department
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2023: Issue 283
Language:
English
Publication Date:
28 Jul 2023
DOI:
https://doi.org/10.5089/9798400252310.002
ISBN:
9798400252310
ISSN:
1934-7685
Pages:
299
Keywords:
ASSESSMENT methodology; adequacy ASSESSMENT program; risk management; banking authority; Basel committee; Financial stability assessment; Credit risk; Market risk; Operational risk; Bank supervision; Global; Baltics
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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 (CBI) ability to access funding for banking regulation and supervision. 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, resulting in highly capitalized and adequate liquidity levels for banks. 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 the area of expertise in AML/CFT to implement a risk based supervisory assessment model for banks and has carried out deep on-site inspections to assure itself of the effectiveness of bank’s risk management practices regarding compliance with applicable AML/CFT legislative and supervisory requirements.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund