Quick link

Supervisory Disclosure

The integration of financial markets in Europe requires consistent implementation and convergence of supervisory practices across the European Economic Area. The importance of supervisory transparency has been stressed by the Requirements Directive (CRD). The CRD requires supervisory authorities to make disclosures that allow meaningful comparisons of supervisory rules and practices across Europe.
In accordance with the Committee of European Banking Supervisors' (CEBS) guidelines on supervisory disclosure, the FME publishes information concerning the laws and regulations adopted in Iceland in the field of prudential regulation and supervision. In addition, the FME discloses information about the exercise of options and national discretions provided for in the CRD.
The tables of information in this section are implemented in a similar manner on the homepages of all the competent authorities of the EEA member states and on the CEBS website.

Rules and guidelines

Articles concerning the implementation of the CRD in Act No. 161/2002 on Financial Undertakings

Rules No. 215/2007 on Capital Requirements and Risk Weighted Exposure Amounts of Financial Undertakings

Rules No. 216/2007 on Large Exposures incurred by Financial Undertakings

Administrative Rule No. 1/2007 to promote a common framework for Supervisory Review (available in Icelandic only)

Administrative Rule No. 2/2007 on Stress Testing, Concentration Risk and Interest Rate Risk (available in Icelandic only)

National Discretions

The CRD contains a number of legal options and national discretions which may be used partly by the supervisory authorities or the supervised institutions. The following list of options and national discretions indicates whether and to what extend the FME has implemented those discretions in its CRD implementation. Also, reference is made to legislation concerned.

Supervisory Review

The FME has issued two administrative rules regarding the Supervisory Review Process.
Administrative Rules No. 1/2007 to promote a common framework for supervisory disclosure is based on CEBS Guidelines on the Application of the Supervisory Review Process under Pillar 2 (GL 03).
Also, Administrative Rules No. 2/2007 on stress testing, concentration risk and interest rate risk was issued. This administrative rule is based on GL 03, on CEBS Consultation Paper 12 on Technical aspects of stress testing under the supervisory review process – (CP12), as well as on CEBS Consultation Paper 11 on Technical aspects of the management of concentration risk under the supervisory review process (CP 11-2nd Part). Both admistrative rules are available in Icelandic only.