S&P Global Ratings (S&P) has today announced that the agency assesses the Icelandic resolution framework as sufficiently effective. This follows the Icelandic Central Bank’s publication of a policy on minimum required own funds and eligible liabilities (MREL) in December 2021 and determination of MREL requirements for Iceland‘s systematically important banks, announced on April 26th.
While the Icelandic banks have until January 2024 to meet the MREL requirements, Íslandsbanki’s existing capital and liability stacks meet those requirements today.
S&P’s long-term issuer credit rating on Íslandsbanki remains unchanged at BBB/A-2, and the outlook remains stable.
Moreover, S&P is assigning a resolution counterparty rating (RCR) of 'BBB+/A-2' to Íslandsbanki.