India, March 26 -- Iceland's financial system remains resilient, but the highly uncertain geopolitical situation could test the strength of the domestic economy, the central bank said on Wednesday.
"The systemically important banks' capital and liquidity are strong, and they have ready access to market-based funding," the Central Bank of Iceland's Financial Stability Committee said in a statement.
The committee decided to hold the countercyclical capital buffer rate unchanged at 2.5 percent. According to the Basel, Switzerland-based BIS, the countercyclical capital buffer aims to ensure that banking sector capital requirements consider the macro-financial environment in which banks operate.
The primary objective of CCyB is to use a buffe...