State to Advertise Bank Director Positions Skip to content

State to Advertise Bank Director Positions

The board of directors of the new state-run commercial banks, New Glitnir (a.k.a. Íslandsbanki), New Landsbanki (a.k.a. NBI) and New Kaupthing, will advertise the director positions at all three banks, as decided at a meeting with Minister of Finance Árni M. Mathiesen and Minister for Business Affairs Björgvin G. Sigurdsson yesterday.

Headquarters of Landsbanki in Reykjavík. Copyright: Icelandic Photo Agency.

The current director of Kaupthing, Finnur Sveinbjörnsson, told Fréttabladid that he plans to reapply for his position. “It was mentioned when the banks were re-launched that it would be natural to advertise these positions.”

“It is not especially surprising that it has to be done at some point, although that point in time may be disputable,” Sveinbjörnsson added.

Some of Kaupthing’s managing directors resigned at the end of the year, Sveinbjörnsson revealed. The positions of two of them have been advertised and a number of applications have been received.

The current director of Landsbanki, Elín Sigfúsdóttir, is not planning to reapply for her position, while Birna Einardóttir, director of Glitnir, told Stöd 2 that she looks at reapplying for the position as an obvious move on her account.

According to Fréttabladid, rumors have been circulating that the new state-run banks may soon become bankrupt like their privately-run predecessors.

“These speculations surfaced because the banks’ loans to individuals and companies are mostly in foreign currency while their capitalization is almost entirely in Icelandic króna,” Sveinbjörnsson explained.

“That is absolutely correct but there are discussions going on between the banks and the Central Bank of Iceland on making so-called currency swap agreements, which means that this risk can be balanced,” Sveinbjörnsson concluded.

Click here to read more about the new banks.

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