Iceland a step ahead on liquidity

Iceland's approach to liquidity management is much more developed than in other countries, said Ingimundur Fridriksson, a governor at the central bank.

Iceland's banks are subject to more stringent liquidity requirements than those in many other countries as liquidity rules were introduced a decade ago and in 2004 further guidelines were set for foreign currency liquidity management.

As a result, the governor said Iceland was "a step ahead of many other countries" in terms of liquidity rules. The

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