Iceland's central bank to reduce number of parties eligible to hold current accounts in bank

• Only deposit-taking institutions including commercial banks, savings banks and Part A governmental institutions.
• The Bank considers it more consistent with its role as a central bank to channel interest rates through those financial institutions.

The Central Bank of Iceland will reduce the number of parties eligible to hold current accounts with the bank, effective April 1, 2020, it said on Monday.

Only deposit-taking institutions including commercial banks, savings banks and Part A governmental institutions, will be eligible to hold current accounts, the central bank said in a statement.

"The Bank considers it more consistent with its role as a central bank to channel interest rates through those financial institutions that can transmit them onwards to individuals and businesses in an effective and transparent manner through deposits and loans," the bank added.