Iceland - Banking SystemsIceland - Banking Systems
The Central Bank of Iceland was established in 1961 by an act of Parliament. The Central Bank of Iceland promotes price stability, maintains international reserves, and promotes efficient financial system, including cross-border and domestic payment systems. For more information see the Central Bank of Iceland’s website. There are three commercial banks in Iceland, Arion Bank, Islandsbanki and Landsbankinn, and one investment bank, Kvika.
All companies have access to regular commercial banking services in Iceland, although financing for large-scale investment projects usually comes from abroad. Pension funds are active in investing in and financing projects in Iceland.
The Central Bank of Iceland has often intervened in the market since the collapse by buying ISK, and those permitted to sell ISK under capital controls have been able to do so. Over the 2-year period from mid-2016 to mid-2018, the ISK had appreciated some 20%, from 125 ISK per U.S. dollar, to 104 in May 2018.
Establishing a bank account in Iceland requires a local personal identification number known as a “kennitala.” Foreign national should contact Registers Iceland for more information on how to register in Iceland https://www.skra.is/english/individuals/.
The Government of Iceland has not announced plans to allow the implementation of blockchain technologies in its banking transactions. There are several data centers in Iceland that house blockchain operations.