Financial Times Say Iceland’s Banks Are Solid Skip to content

Financial Times Say Iceland’s Banks Are Solid

The online edition of British business newspaper the Financial Times reported on Sunday that judging by the Q2 results of Iceland’s three largest commercial banks, Glitnir, Landsbanki and Kaupthing, their operations are on solid ground.

Although the credit crunch has certainly affected the earnings of Glitnir, Landsbanki and Kaupthings banks, their financial strength, core operations and main sources of revenue still delivered good results, Morgunbladid reports.

As pointed out in the article on Financial Times online, the rapid growth of the Icelandic banks, which has mostly been financed with foreign loan capital, has caused concern on financial markets.

That concern has resulted in the current situation of the banks’ credit default swaps (CDS) which has climbed to 1,000 points. Therefore some economists have predicted a collapse in Icelandic banking, but the banks’ Q2 results seem to have calmed such fears.

Director of Landsbanki Bank Sigurjón Árnason told Fréttabladid that it is good that someone is writing about the situation of the Icelandic banks in a positive manner for a change.

Click here to read the article on the Financial Times website.

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