21 March 2009

Changes in Iceland's savings bank operations

The Icelandic authorities decided today to take co-ordinated action to protect the interests of savings bank customers and to ensure continued banking services throughout the country.

The measures taken provide a strong foundation for sustained savings bank operations, enabling the savings banks to take active part in rebuilding the Icelandic economy. As the Government has already announced, all deposits in domestic banks in Iceland are guaranteed in full.

The Financial Supervisory Authority has intervened in the operations of SPRON and Sparisjódabankinn on the basis of the Act on Authorisation for Treasury Disbursements due to Unusual Financial Market Circumstances, etc., no. 125/2008.

SPRON customers will automatically have access to their deposits and will receive banking services through New Kaupthing. The same applies to customers of Netbankinn. Customers can obtain information online and at SPRON and Kaupthing branches, where staff will be available to advise them on how to proceed.

Sparisjódabankinn’s payment intermediation operations will be taken over by the Central Bank of Iceland.

Further information can be found on the websites of the Financial Supervisory Authority (www.fme.is), Ministry of Business Affairs (www.stjr.is), SPRON (www.spron.is), and Kaupthing (www.kaupthing.is).