Iceland to merge central bank and regulator

Iceland is to merge its central bank and financial regulator as part of broader reform plans designed to boost trust in public institutions.

The Central Bank of Iceland and Fjármálaeftirlitið (FMA), the financial supervisory authority, are to be merged “in a manner that builds greater trust and ensures efficiency in the implementation of macro-prudential policy and financial market supervision”, the prime minister’s office said in a statement on October 11.

The central bank stressed that infla