banksLandsbanki

Landsbanki Íslands hf, commonly referred to as Landsbanki, was one of Iceland’s largest financial institutions. Founded in the late 19th century as a savings bank, it evolved into a universal bank offering retail, commercial, and investment banking services. In the 2000s, Landsbanki expanded internationally, notably through its online deposit brand Icesave, which marketed savings accounts in the United Kingdom and the Netherlands.

During the global financial crisis of 2008, Landsbanki faced severe liquidity pressures. The Icelandic authorities intervened, placing the bank into receivership. Its international operations, including the Icesave platform, were wound down or separated, while the domestic banking activities were reorganized under a state-supported vehicle. A successor domestic institution, often referred to as the new Landsbanki or Landsbankinn, was created to continue core banking services under Icelandic government ownership and was later renamed Landsbankinn. The government guaranteed certain deposits and began negotiations with creditors to stabilize the financial system.

The collapse sparked the Icesave dispute, with claims from UK and Dutch depositors. Iceland entered negotiations and settlement arrangements with these creditor countries, and repayments were made over subsequent years as part of broader crisis resolution efforts. The episode prompted sweeping reforms of Iceland’s financial sector, including guarantees for deposits and tighter regulation of banks.

Present-day Landsbankinn remains a major Icelandic bank, predominantly serving domestic retail and corporate clients and owned largely by the Icelandic state. Landsbanki as an international banking entity was wound down in the crisis era, and its domestic operations were continued and reorganized under the Landsbankinn umbrella.