Landsbanki bank has taken over all assets and liabilities of Sparisjóður Vestmannaeyja, the local savings bank in Vestmannaeyjar. The Icelandic Financial Supervisory Authority authorized the merger yesterday.
The initial capitalization of the savings bank is estimated to be worth ISK 332 million (USD 2.4 million, EUR 2.3 million), ruv.is reports.
As Sparisjóður Vestmannaeyja no longer fulfilled the legal conditions for equity, its financial difficulties had to be responded to. A statement from Landsbanki reads that the savings bank’s executives had sought its assistance after attempts to restore its finances proved unsuccessful.
Sparisjóður Vestmannaeyja’s operations will remained unchanged for now. The savings bank has branches in Selfoss, Höfn, Breiðdalsvík and Djúpivogur.