Iceland Central Bank Says Financial System Foundations ‘Solid’

TREE NEWS update: Iceland’s central bank financial stability committee said the country’s financial system is operating soundly and is well prepared to withstand unforeseen shocks, noting systemically important banks are in good financial health with smooth access to market funding. The committee said long-term non-indexed Icelandic government bond yields have not risen as much as overseas long-term yields, which climbed on fiscal sustainability concerns, and that the krona has stayed stable partly due to high national savings and moderate debt levels. It warned that global turbulence, persistent inflation, high domestic interest rates and slowing economic activity could test the system’s resilience.