Landsbanki
Landsbanki (literally "national bank"), also commonly known as Landsbankinn (literally "the national bank") which is now the name of the current rebuilt bank (here called "New Landsbanki"), was one of the largest Icelandic commercial banks that failed as part of the 2008–2011 Icelandic financial crisis when its subsidiary sparked the Icesave dispute. On October 7, 2008, the Icelandic Financial Supervisory Authority took control of Landsbanki and created a new bank for all the domestic operations called Nyi Landsbanki (new Landsbanki) so that the domestic bank could continue to operate, the new bank continued to operate under the Landsbanki name in Iceland.[1]
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| Private (2003-2008) Government-owned corporation (prior to 2003) | |
| Industry | Banking |
| Successor | NBI hf |
| Founded | Reykjavik, Iceland, 1885 (commenced operations on 1 July 1886) |
| Defunct | Entered into receivership 7 October 2008, awaiting dissolution remaining assets |
| Headquarters | Reykjavik, Iceland |
Key people | Bjorgolfur Guomundsson (Chairman of the board), Halldor J. Kristjansson (co-CEO), Sigurjon P. Arnason (co-CEO) |
Number of employees | 2,770 (2007) |
| Website | www.landsbanki.is |
Prior to its failure the bank was one of the largest Icelandic banks with assets of ISK 3,058 billion in December 2007 and a market capitalisation of ISK 383 billion. It been in operation since 1885 and had been instrumental in the economic development of business and industry in Iceland. From 1927 to 1961 the bank had acted as the central bank, until it was replaced by the Central Bank of Iceland, although this interest was primarily directed towards note issuance rather than monetary policy. The bank had been state owned and was privatized in stages between 1998 and 2003.
Landsbanki had positioned itself as Iceland's primary provider of general and specialised financial services to individuals, corporate entities and institutions. The bank had the country's most extensive branch network with 40 branches and sub-branches. At the end of 2006, Landsbanki provided close to 40% of corporate lending in Iceland, and for around 60% of companies listed on the OMX Iceland Stock Exchange, Landsbanki was their principal bank or one of two banks with whom they did business. The leading provider of M&A, derivatives, equity and fixed income services.
It started to expanded overseas in 2000 through a number of acquisitions and organic growth, the expansion would lead to the creation of its Icesave subsidiary in 2006 which would ultimately seal its fate.