bankakrísan

Bankakrísin refers to a period of significant financial instability and the collapse or near-collapse of several Icelandic banks. This event, which began in the autumn of 2008, had profound and far-reaching consequences for the Icelandic economy and society. The rapid growth and subsequent failure of the country's three largest banks, Kaupthing, Landsbanki, and Glitnir, were central to the crisis.

The Icelandic banking system experienced explosive growth in the years leading up to 2008, fueled by deregulation and access to international credit markets. This expansion led to a massive increase in the size of the banks relative to the size of Iceland's economy. When the global financial crisis hit, Iceland's highly leveraged and interconnected banking sector proved extremely vulnerable.

The Icelandic government took drastic measures to address the crisis, including nationalizing the major banks and seeking assistance from the International Monetary Fund (IMF). The currency, the Icelandic króna, depreciated sharply. The crisis led to widespread job losses, a significant decline in living standards, and a period of economic recession. However, Iceland's subsequent economic recovery, partly driven by a resurgence in tourism and a devalued currency, has been notable, though the long-term impacts of the bankakrísin continue to be debated and analyzed.