The Central Bank of Iceland has amended the rules on liquidity coverage requirements for credit institutions.
Currently, credit institutions’ liquidity ratio in all currencies combined is required to be at least 100% at all times. In addition, their liquidity ratio in all foreign currencies must similarly be at least 100% at all times.
The amendment requires credit institutions to now also maintain a liquidity coverage ratio in Icelandic krónur of at least 50%.
The amended rules come into effect on January 1, 2020.
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