Icelandic banks affected by the financial crisis

Glitnir Bank, Landsbanki, Kaupthing Bank

In the wake of the global liquidity crisis in the beginning of October 2008, the three main commercial banks of Iceland, Glitnir, Landsbanki and Kaupthing, were not able to refinance themselves despite having considerable assets to match their debts and having operated in full compliance with European banking laws. Consequently, Glitnir, Landsbanki and Kaupthing were taken into administration by the government of Iceland.

The new Landsbanki, Kaupthing and Islandsbanki (new Glitnir) maintain websites with answers to common questions.


Moving Towards Solving Differences on Deposit Guarantees

Significant progress has been made towards solving the differences on the interpretation of legal obligations with respect to deposit guarantees in the European Economic Area. The issue stemmed from difficulties following the collapse of former privately-owned Icelandic banks. Talks between Iceland and several EU member states, facilitated by the French EU Presidency, led to a common understanding that will form the basis for further negotiations.

Iceland has reached a common understanding with EU member states on resolving insolvency matters related to deposit holders in branches of Landsbanki in the UK and Netherlands (“Icesave”) and Kaupthing Branch in Germany (“Edge”). Bilateral discussions are ongoing to resolve outstanding issues.

Resolution Committees of the collapsed banks

The Icelandic Financial Supervisory Authority appointed Resolution Committees following the decision to dismiss the Boards of the three banks. Resolution committees are now working in Glitnir, Landsbanki and Kaupthing.

The Resolution Committees undertake the affairs of the banks, including supervising, handling of all the banks’ assets, and conducting the banks’ business operations.

Depositors’ and Investors’ Guarantee Fund

The Depositors’ and Investors’ Guarantee Fund (DIGF) is a non-profit organization that operates in accordance with the Act on Deposit Guarantees and an Investor Compensation Scheme. The role of the Fund is to provide a minimum level of protection for deposit owners and customers of financial institutions authorized by law to engage in securities trading.

Claim forms can be found on the Depositors’ and Investors’ Guarantee Fund’s website (click the English flag on the right hand side, the form is on the middle of the page).

Completed claim forms shall be sent by traditional mail to the Fund’s address:


Depositors’ and Investors’ Guarantee Fund
Borgartun 26, 3. floor
105 Reykjavik
Phone: +354 540 1200
Open for queries via telephone: 09:00 – 16:00

E-mail: [email protected] and [email protected]

SPRON and Sparisjóðabankinn savings banks

The Restructuring of Iceland’s savings banks was announced on march 21 2009.

SPRON and its customers

SPRON customers will automatically have access to their deposits and banking services through New Kaupthing. Customers will be provided with information online and at SPRON and Kaupthing branches, where staff will be available to advise customers on how to proceed.

Sparisjódabankinn and its business partners

The Central Bank will take over the Sparisjodabankinn and business partners payment intermediation.


On march 9 2009 the Icelandic Financial Supervisory Authority took control of Straumur-Burdaras Investment Bank hf.

The Icelandic Financial Supervisory Authority (FME) has appointed a Resolution Committee which will take over all authority of the Board of Directors of Straumur.