A new banking institution fully owned by the Government of Iceland has been established, taking over part of the operations of Landsbanki Íslands hf. The new bank's formal name will be New Landsbanki Íslands hf.

• The new bank takes over Landsbanki's domestic assets to ensure provision of normal banking services and the safety of deposits in Iceland.
• Landsbanki's international operations have been separated from the new entity
• All Landsbanki's domestic branches, call center, ATM's and internet banking will be open for business as usual

On 7th October 2008, the Icelandic Parliament amended Article 100 Act No. 161/2002 and conferred on the Icelandic Financial Supervisory Authority (FME) the power to take control of Landsbanki Íslands hf. which was immediately used by the FME. Concurrently, the Icelandic Treasury established a new limited liability company named Nýi Landsbanki Íslands hf (e. New Landsbanki Íslands hf).

A board meeting of the FME on 9th October decided that Nýi Landsbanki Íslands hf. would take over some of the assets, rights and obligations of Landsbanki Íslands hf., and that the bank's Icelandic operations would come under the control of the new company and a new board from that date. The decision means, inter alia, that the new bank takes over all the bank's deposits in Iceland, and also a bulk of the bank's assets that relate to its Icelandic operations, such as loans and other claims.

According to the FME, and independent evaluation of the value of assets and liabilities, together with a final settlement will be made within the next 30 days. The new bank's equity will be ISK 200bn and the size of the balance sheet will be around ISK 2.300bn.

A new CEO has been appointed along with other senior managers. Sigríður Elín Sigfúsdóttir has been appointed as Chief Executive of the new bank; she was formerly Managing Director of Corporate Banking at Landsbanki. The team of Managing Directors will be: Anna Bjarney Sigurdardóttir, Branch Support; Árni Thór Thorbjörnsson, Corporate Banking; Jón Thorsteinn Oddleifsson, Financial Operations; Stefán Hédinn Stefánsson, Asset Management; Gudmundur Gudmundsson, Operations; Gunnar Vidar, Legal Department; and Atli Atlason, Human Resources. Thórir Örn Ingólfsson will oversee the bank's risk management. The banks senior management will soon announce the new structure and their operational scope.

Statement by the Ministry of Finance

Statement by Landsbanki Íslands hf.