Valuation of the New Icelandic Banks Completed Skip to content

Valuation of the New Icelandic Banks Completed

The Icelandic Ministry of Business Affairs announced this week that Deloitte LLP had delivered the valuation of the assets that were moved from the failed banks to the new state-owned banks and that Oliver Wyman had issued its independent assessment report.

The headquarters of Glitnir Bank in Reykjavík, which has now been re-branded as Íslandsbanki. Copyright: Icelandic Photo Agency.

“The government feels that this is an important first step in recapitalizing the three new Icelandic banks; Íslandsbanki [formerly Glitnir], New Kaupthing and NBI [formerly Landsbanki]. The recapitalization of the banks is then again a crucial step in revitalizing the Icelandic economy,” a statement from the Business Ministry reads.

The statement further explains that the Icelandic Financial Supervisory Authority (FME) will make relevant parts of the report available to the banks’ resolution committees, as well as to their advisers, and grant access to those members of the Iceland Chamber of Commerce (ICC) who have signed appropriate undertakings.

The capitalization of the banks and agreement on compensation is in progress. “It is now expected that the capitalization of the banks will take place in conjunction with the overall agreement on the compensation instrument for creditors,” the statement explains.

It is stated that although the government realizes that it is important to finalize the capitalization as soon as possible, it is also important to ensure that the information process is “fair” and that the interests of all parties are taken into account.

Corporate advisory firm Hawkpoint is now negotiating on behalf of the Icelandic government with creditors of the old banks on the appropriate compensation for assets transferred from the old banks to the new banks.

Click here to read more about the valuation.

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