New Landsbanki Takes Over Domestic Operations of Landsbanki Islands hf.

9.10.2008

  • The new bank takes over Landsbanki´s domestic assets to ensure provision of normal banking services and the safety of deposits in Iceland
  • Landsbanki´s international operations are separated
  • All Landsbanki´s domestic braches, call centres, ATM´s and internet banking will be open for business as usual


On 7 October 2008 the Financial Supervisory Authority, Iceland (FME) used powers granted by the Icelandic Parliament with reference to Article 100 of Act. No. 161/2002, as amended, to take control of Landsbanki Islands hf.

The FME has now decided to transfer a part of Landsbanki´s operations to a new bank that has been formed and is fully owned by the Icelandic Government. The decision ensures continued banking operations for Icelandic families and businesses.

The decision means, inter alia, that the new bank takes over all the bank´s deposits in Iceland, and also the bulk of the bank´s assets that relate to its Icelandic operations, such as loans and other claims.

An independent evaluation of the value of assets and liabilities, together with a final settlement will be made within the next 30 days. The new bank´s equity will be ISK 200bn. and the size of the balance sheet will be around ISK 2.300bn.

Sigríður Elín Sigfúsdóttir has been appointed as Chief Executive of the new bank. The new bank´s formal name will be New Landsbanki Íslands hf.

The decision can be found here.

For further information for the media please contact Íris Björk Hreinsdóttir, iris@fme.is or Úrsúla Ingvarsdóttir, ursula@fme.is tel. +354 525 27 00

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