Banking in Iceland

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]

After the banks collapsed, $85 billion in debt, 50,000 people had their savings wiped out. As the Icelandic krona plunged by 80%, capital controls were imposed on businesses, pensioners and individuals that would last till 2017.  

Central Bank
  • Seðlabanki Íslands

Major Commercial Banks
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See also
  • 2008–11 Icelandic financial crisis

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

2.https://www.forbes.com/sites/heatherfarmbrough/2019/12/23/how-icelands-banking-collapse-created-an-opportunity/


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