Banking in Iceland explained

Banking in Iceland faced a crisis in 2008, which resulted in the government taking over three of its largest commercial banks.

The short-term liabilities of Icelandic banks in proportion to Iceland's GDP are 211%, as of 11 October 2008, or 480% of the country's national debt, and the average leverage ratio (assets/net worth) is 1 to 14.^[1]

History

Icelandic financial crisis

See main article: 2008–2011 Icelandic financial crisis. In 2008, Iceland's three major privately owned commercial banks defaulted.

Major Banks

Central Bank

• Seðlabanki Íslands

Major Commercial Banks

• • Landsbankinn Íslandsbanki
• Arion banki
• MP banki

Investment Banks

ALMC hf

See also

• 2008–11 Icelandic financial crisis

Notes and References

1. Web site: The World's Banks Could Prove Too Big to Fail — or to Rescue. 11 October 2008. The New York Times. 14 August 2016.