Jump to navigation Jump to search This article is about the Icelandic bank up to its failure in 2008. Prior to its failure the bank was one of the largest Valutakurser euro forex investment banks with assets of ISK 3,058 billion in December 2007 and a market capitalisation of ISK 383 billion. It been in operation since 1885 and had been instrumental in the economic development of business and industry in Iceland. Landsbanki had positioned itself as Iceland’s primary provider of general and specialised financial services to individuals, corporate entities and institutions.
The bank had the country’s most extensive branch network with 40 branches and sub-branches. It started to expanded overseas in 2000 through a number of acquisitions and organic growth, the expansion would lead to the creation of its Icesave subsidiary in 2006 which would ultimately seal its fate. In establishing Landsbanki, the Icelandic parliament hoped to boost monetary transactions and encourage the country’s nascent industries. Liberalisation of financial services, beginning in 1986, opened up new opportunities, which the bank managed to take advantage of despite some economic adversity. The relatively limited size of the Icelandic market prompted Landsbanki, first among Icelandic commercial banks, to expand and diversify outside of Iceland when it acquired the London-based Heritable Bank in 2000. On 9 August 2007 Landsbanki completed its acquisition of UK investment bank Bridgwell plc.
The acquisition of Bridgewell made Landsbanki the second largest broker to listed companies on the London Stock Exchange measured by number of clients. A deposit programme for the UK market, Icesave, was launched in October 2006. An easy-access, on-line savings account, Icesave became an instant success, transforming Landsbanki’s balance sheet and funding profile. 8 bn with over 80,000 accounts opened.