Icelandic State Takes Over Savings Bank Skip to content

Icelandic State Takes Over Savings Bank

The Icelandic state took over the Keflavík Savings Bank (Sparisjódur Keflavíkur) late last night. Negotiations with claimants had been going on for some time but yesterday it became clear that an agreement could not be reached and the bank went into insolvency.

A new company, SPKEF, has been founded to oversee the saving bank’s operations. Ásta Dís Ólafsdóttir, president of the Bifröst University business department, has been hired as chairperson of the new board, Fréttabladid reports.

The savings bank’s employees were called in for a meeting this morning. No layoffs are being planned for the time being and no immediate changes to the bank’s group of executives are expected.

It has yet to be decided how much the Icelandic state, as the bank’s new owner, will contribute with initial capitalization.

The bank will be taken over by the state’s banking administration, which will later decide whether it will be merged with other state-owned financial companies.

The savings bank’s operations will remain unchanged and all deposits are fully secured. Its branches will be open for business as usual as of today.

After the savings bank SPRON went into insolvency last year, Keflavík Savings Bank has been the country’s second-largest savings bank after Byr, with 16 branches in as many municipalities. The bank has a 102-year history.

Click here to read more about SPRON’s bankruptcy.

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