bankaviðmið

Bankaviðmið is an Icelandic term that translates to "bank guidelines" or "banking standards." It refers to the set of rules, regulations, and best practices that govern the operations of banks and other financial institutions in Iceland. These guidelines are established by various authorities, primarily the Central Bank of Iceland (Seðlabanki Íslands) and the Financial Supervisory Authority (FME – Fjármálaeftirlitið).

The purpose of bankaviðmið is to ensure the stability and integrity of the Icelandic financial system. They cover a wide range of areas, including capital adequacy requirements, liquidity management, risk management, consumer protection, and anti-money laundering measures. By adhering to these standards, banks are expected to maintain sound financial health, protect depositors' funds, and prevent systemic risks.

Compliance with bankaviðmið is mandatory for all licensed financial institutions operating in Iceland. The FME plays a crucial role in supervising banks to ensure they meet these requirements. Regular audits and inspections are conducted to monitor compliance. The framework of bankaviðmið is often influenced by international standards and regulations, such as those set by the Basel Committee on Banking Supervision, to align the Icelandic financial sector with global best practices.