banksamfélag

Banksamfélag refers to the Icelandic banking sector. This encompasses all financial institutions operating in Iceland that are authorized to conduct banking activities, including deposit-taking and lending. Historically, the Icelandic banking sector underwent significant deregulation in the early 2000s, leading to rapid expansion and internationalization of the major banks. This period was followed by a severe financial crisis in 2008, which resulted in the collapse and subsequent restructuring of the country's three largest banks: Kaupthing, Landsbanki, and Glitnir.

Following the crisis, the Icelandic banking sector was rebuilt with a focus on stability and a more conservative approach. New banks were established, and existing smaller ones were reorganized. The regulatory framework was strengthened to prevent a recurrence of the previous crisis. Today, the banksamfélag is characterized by a few dominant players serving both the domestic market and a limited international clientele. The sector plays a crucial role in the Icelandic economy, facilitating commerce, investment, and personal finance. It operates under the supervision of the Central Bank of Iceland (Seðlabanki Íslands) and the Financial Supervisory Authority (Fjármálaeftirlitið). The sector's performance is closely monitored due to its systemic importance to the national economy.