Skipulagsáætlunin

Skipulagsáætlunin, also known as the Icelandic Financial Supervision and Control Act, is a legislative framework in Iceland that governs the supervision and regulation of the financial sector. Enacted in 2008, the act aims to ensure the stability and integrity of the Icelandic financial system by establishing a robust regulatory framework. It outlines the responsibilities of the Central Bank of Iceland (Seðlabanki Íslands) in overseeing banks, insurance companies, and other financial institutions.

The act mandates the Central Bank to conduct regular stress tests, monitor capital adequacy, and enforce prudential standards. It also requires financial institutions to maintain adequate capital reserves and liquidity to withstand economic shocks. Additionally, the act establishes a framework for resolving financial distress, including the possibility of state intervention in case of severe financial crises.

Skipulagsáætlunin also includes provisions for the protection of depositors and the resolution of failed financial institutions. It mandates that banks and other deposit-taking institutions be covered by the Deposit Insurance Fund, ensuring that depositors' funds are protected up to a specified limit. In the event of a bank failure, the act outlines the procedures for the resolution of the institution, which may involve the appointment of a resolution authority and the transfer of assets to a resolution fund.

The act is regularly reviewed and updated to adapt to changes in the financial landscape and to address emerging risks. It plays a crucial role in maintaining the stability and resilience of the Icelandic financial system, contributing to the overall economic stability of the country.