viðskiptabankar

Viðskiptabankar (commercial banks) in Iceland are financial institutions that provide everyday banking services to individuals and businesses. They accept deposits, grant loans, process payments, issue payment instruments such as debit and credit cards, and offer online and branch-based banking, as well as savings products and basic advisory services.

Regulation and oversight: In Iceland, commercial banks operate under the supervision of the Fjármálaeftirlitið (Financial Supervisory Authority) and are part of the monetary and financial system overseen by Seðlabanki Íslands (Central Bank of Iceland). They must comply with prudential, liquidity, and consumer-protection requirements. Deposits are protected by the national deposit-guarantee scheme.

Market and operations: The term contrasts with investment banks and wholesale lenders. Many Icelandic commercial banks provide both retail and corporate banking, mortgage lending, and payment services, often through a universal banking model. The sector is characterized by a small number of large institutions that dominate the market, supported by a framework of regulation designed to ensure stability and consumer protection.

Notable banks: Arion Banki, Íslandsbanki, Landsbankinn. History: The 2008 financial crisis led to major restructuring and consolidation of the Icelandic banking sector; since then, regulation has tightened and the market has stabilized under the oversight of national authorities.