Minister of Finance Steingrímur J. Sigfússon announced yesterday that improvements on the financial environment in Iceland are already being worked on in response to OECD’s report on the banking collapse and the steps Iceland must take towards economic recovery.
Minister of Finance Steingrímur J. Sigfússon. Photo by Páll Kjartansson.
Sigfússon also said that extensive changes to the legal environment in Iceland are underway, ruv.is reports.
One of the items mentioned in OECD’s analysis of the causes of the banking collapse is that the Icelandic Financial Supervisory Authority had been too weak and that the Central Bank did not possess the legal authority necessary to take action.
Sigfússon said he agrees with the report and that actions are already being taken in response to the banking collapse, for example, that the Central Bank is being relocated to a new ministry for economic and business affairs.
The minister vowed that it will never be allowed to happen again that weak supervisory institutions watch the banking system outgrow the national economy and then collapse with serious consequences.
Click here to read more about OECD’s report in the Wall Street Journal.