The Faroe Islands National Bank shall strive to ensure financial stability and is the financial institution of the government. Based on its role as the bank of the country and its analyses of the financial sector as a whole, the National Bank seeks to serve the Faroese people by providing information and warnings about the financial risks in the economy.
The Faroe Islands National Bank provides clear, reliable and consistent information about the country’s liquidity and debt and the financial stability of the Faroe Islands.
Strive for financial stability in the Faroe Islands
The National Bank strives to ensure the financial stability of the Faroe Islands by maintaining oversight of the risks in the financial system and other areas of the economy that could impact financial stability. The National Bank serves as the administrative office for the Faroe Islands Systemic Risk Advisory Council. The purpose of the Risk Council is to identify and oversee the systemic financial risks in the financial sector and the economy as a whole in the Faroe Islands. To help ensure that the Risk Council shall effectively accomplish its mission, the National Bank provides those analyses that the Risk Council requires in order to carry out its purpose.
Manage the liquidity of the country
The National Bank manages the liquidity of the country that includes the liquidity of the government administration, all national agencies and institutions and the like. The National Bank shall strive to ensure that the country always has sufficient liquidity available to meet its liabilities. Management of liquidity shall be grounded in a cautious, long-term investment strategy.
Manage the debt of the country
The National Bank administers the country’s loan facilities and manages the country’s debt by ensuring that the best conditions are arranged when a loan facility is necessary. The National Bank shall strive to ensure that a reasonable balance is maintained between cost and refinancing risk. In addition, the National Bank shall remain vigilant over the creditworthiness of the Faroe Islands.
Disseminate information to the public
The National Bank shall disseminate information about the financial standing of the country, the status of the financial sector and other economic factors that could influence financial stability. In its communications, the National Bank shall strive to provide reliable, relevant and comprehensible information. The National Bank shall be the natural choice of the public from which to seek financial-related information. In addition to being proactive and visible vis-à-vis the media, the website of the National Bank is the most important tool in this connection.