Black Monday Good for Icelandic Banks in UK Skip to content

Black Monday Good for Icelandic Banks in UK

By Iceland Review

Deposits at the Icelandic banks in Britain, Icesave (operated by Landsbanki Bank) and Edge (operated by Kaupthing Singer Friedlander), have grown since Monday, a black day on Wall Street, after British savings-account holders took their business to the Icelandic banks.

Last Monday was in fact the fourth best day for Kaupthing Bank since it began operating, Morgunbladid reports.

“Savings-account holders in the UK became somewhat worried about their banks and moved their deposits over to us,” said Gudni Adalsteinsson, managing director of Kaupthing Bank’s Treasury Department.

Shares in banks like HBOS and Barclays dropped in value on Monday.

Adalsteinsson also noted that Kaupthing Bank has not noticed any negative response to coverage in the foreign media of risky operations undertaken by Icelandic banks.

The banks have completed this year’s refinancing of ISK 820 billion (USD 8.7 billion, EUR 6.3 billion) and the refinancing for next year is well underway. In 2009, a long-term loan worth ISK 850 billion (USD 9.2 billion, EUR 6.5 billion) has to be paid.

Now that fixed income markets have nearly closed, the banks are placing more emphasis on deposits.

Click here to read about in which other ways the black day on Wall Street may affect the Icelandic economy.

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