meta_id 3189228

On May 27, 2026, Iceland's Official Gazette published regulations establishing rules for joint supervisory decisions regarding the application of certain methods for calculating capital requirements for financial institutions. The Central Bank of Iceland (Seðlabanki Íslands) issued these regulations under authority granted by the Financial Undertakings Act, No. 161/2002. The regulations establish a framework for financial institutions seeking permission to apply specific methods for calculating capital requirements under EU Regulation (EU) No. 575/2013 on prudential requirements for credit institutions and investment firms. The rules implement two European Commission implementing regulations into Icelandic law: Commission Implementing Regulation (EU) 2016/100 from October 16, 2015, which sets out the joint decision-making procedure for applications for specific prudential permissions, and Commission Implementing Regulation (EU) 2025/2338 from November 20, 2025, which amends the 2016 regulation with updated technical implementation standards. Both regulations were incorporated into the European Economic Area (EEA) Agreement through EEA Joint Committee decisions and apply within Iceland's financial regulatory framework. The regulations apply to all financial institutions operating in Iceland that seek to use alternative methods for capital requirement calculations under the EU prudential framework. These rules replace previous regulations on supervisory decisions regarding certain methods for calculating capital requirements for financial institutions, No. 793/2022, which are hereby repealed. The regulations took effect immediately upon publication on May 27, 2026. Financial institutions requiring guidance on the joint decision-making procedure or seeking approval for alternative capital calculation methods should consult the Central Bank of Iceland's financial supervision division.