REYKJAVIK, April 6 Iceland's economy is doing
well and the financial system is sound, but there are risks that
could lead to overheating in the longer term, the central bank
said on Thursday.
Last month, the country removed capital controls imposed
during the 2008 financial crisis.
The central bank said those measures had proceeded smoothly.
"Risks to financial stability have not materialised during
the liberalisation process. This has reduced the level of
assessed risk," it said in its bi-annual financial stability
It said risks in the financial system were related to the
real estate market, a rapidly growing tourism industry and the
removal of capital controls.
(Reporting by Ragnhildur Sigurdardottir and Daniel Dickson;
Editing by Simon Johnson)