The Systemic Risk Council can make recommendations, observations and warnings about Faroese circumstances. Representatives from the relevant Faroese authorities can be invited to participate in the discussions of the Council as observers, when the discussions concern Faroese circumstances.
The Systemic Risk Council is responsible for identifying and monitoring systemic financial risks in the Faroe Islands, and can make recommendations on macroprudential initiatives targeted at banks in the Faroe Islands. Recommendations on macroprudential measures are to be addressed to the Minister for Industry, Business and Financial Affairs. The Minister is responsible for setting the capital buffer rates for the Faroe Islands.