The Financial Supervisory Authority (FME) carries out an annual assessment of risk in the operations of systemically important financial institutions by means of a Supervisory Review and Evaluation Process (SREP). The process involves an assessment of the capital requirement for financial institutions which results in an additional capital requirement under Pillar II.

The conclusions of this annual process for Arion Bank have now been made available. The Bank shall maintain an additional capital requirement of 2.9% of risk-weighted assets, which is a decrease of 0.5 percentage points from the previous assessment. The Bank’s total capital requirement, taking into account capital buffers, therefore decreases from 19.8% to 19.3%.  

The increase in the countercyclical capital buffer for Icelandic financial institutions, as per FME’s decision in May 2018, comes into effect in May 2019, resulting in a restored capital requirement of 19.8%, if all other factors remain unchanged.

Attached is the transparency statement from the FME (translated by Arion Bank).


For further information please contact Sture Stolen, head of Arion Bank’s investor relations, at or Haraldur Guðni Eiðsson, head of Arion Bank’s Corporate communications, at, tel. +354 444 7108.