Iceland's Financial System Deemed Resilient Amid Global Economic Challenges
Iceland's financial system has been rated as resilient by the Financial Stability Committee, despite global economic uncertainties. The committee noted that while household and business debt levels remain low, there is a growing concern over the construction sector, where debt has increased and defaults are beginning to rise. The Central Bank of Iceland's stress tests indicate that the country's major banks can withstand significant economic shocks. However, the committee highlighted risks in the housing market, with falling real house prices and longer selling times for new homes. 
