Iceland introduces foreign currency funding rule based on Basel Committee's NSFR


The Central Bank of Iceland (CBI) today adopted new rules that aim to limit the degree to which banks can rely on unstable short-term funding to finance long-term lending in foreign currencies.

The policy is based on the net stable funding ratio (NSFR) developed by the Basel Committee on Banking Supervision, but focused purely on foreign exposures. It covers banks' funding needs over a period of 12 months.

Furthermore, the CBI plans to implement another 'foreign currency NSFR' covering periods o

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: