Landsbanki
Encyclopedia
Landsbanki, also commonly known as Landsbankinn (literally "the national bank") in Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...

, is a private Icelandic bank with international operations. On October 7, 2008, the Icelandic Financial Supervisory Authority took control of Landsbanki.

Their total assets were of ISK
Icelandic króna
The króna is the currency of Iceland. The króna is technically subdivided into 100 aurar , but in practice this subdivision is no longer used....

 3,058 billion (
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

33.4 bn) at 31 December 2007 and a market capitalisation of ISK 383 billion (€4.4 bn) at 3 May 2007. Landsbanki is rated by Moody's
Moody's
Moody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...

 (Caa1/E/NP/Developing) and Fitch
Fitch Ratings
The Fitch Group is a majority-owned subsidiary of FIMALAC, headquartered in Paris. Fitch Ratings, Fitch Solutions and Algorithmics, are part of the Fitch Group....

 (D/D/F/Evolving).

Since its establishment in 1885 (commenced operations in 1886) Landsbanki has been instrumental in the economic development of business and industry in Iceland. Landsbanki served as the central bank of Iceland
Central Bank of Iceland
The Central Bank of Iceland is the central bank or reserve bank of Iceland. It has served in this capacity since 1961, when it was created by an act of the Alþingi out of the central banking department of Landsbanki Íslands, which had had the sole right of note issuance since 1927 and had...

 from 1927 until 1961. At the time, this interest was primarily directed towards note issuance rather than monetary policy
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment...

. It was later replaced in this capacity by the Central Bank of Iceland
Central Bank of Iceland
The Central Bank of Iceland is the central bank or reserve bank of Iceland. It has served in this capacity since 1961, when it was created by an act of the Alþingi out of the central banking department of Landsbanki Íslands, which had had the sole right of note issuance since 1927 and had...

 at the behest of the Althing
Althing
The Alþingi, anglicised variously as Althing or Althingi, is the national parliament of Iceland. The Althingi is the oldest parliamentary institution in the world still extant...

. While still publicly owned it went through a state-directed merger with Samvinnubanki (Cooperative Bank). Landsbanki Íslands was converted to a public limited company
Public limited company
A public limited company is a limited liability company that sells shares to the public in United Kingdom company law, in the Republic of Ireland and Commonwealth jurisdictions....

 on January 1, 1998. The firm was subsequently privatized
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...

 in stages between 1998 and 2003.

Samson Holdings became the main shareholder. Samson Holdings was owned by Bjorgolfur Thor Bjorgolfsson
Björgólfur Thor Björgólfsson
Björgólfur Thor Björgólfsson , known internationally as Thor Bjorgolfsson, is an Icelandic businessman and entrepreneur, and former chairman of the financial firm Straumur-Burðarás and chairman of investment firm Novator Partners.He has been declared "Iceland's first billionaire", and was ranked as...

 and his father.

Landsbanki has positioned itself as Iceland's primary provider of general and specialised financial services to individuals, corporate entities and institutions. The bank holds a market share of over 30% in all major business segments and has the country's most extensive branch network. At year-end 2006, Landsbanki provided close to 40% of corporate lending in Iceland, and for around 60% of companies listed on the OMX Iceland Stock Exchange, Landsbanki was their principal bank or one of two banks with whom they did business. The leading provider of M&A, derivatives
Derivative (finance)
A derivative instrument is a contract between two parties that specifies conditions—in particular, dates and the resulting values of the underlying variables—under which payments, or payoffs, are to be made between the parties.Under U.S...

, equity and fixed income
Fixed income
Fixed income refers to any type of investment that is not equity, which obligates the borrower/issuer to make payments on a fixed schedule, even if the number of the payments may be variable....

 services, Landsbanki also has a more than 40% market share in FX
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...

. In addition, Landsbanki provides a full range of asset management
Investment management
Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...

 services, with a 34% market share in domestic funds.

Building on its strong foundation in Iceland, Landsbanki has extended its financial operations into new markets, focusing on serving mid-cap corporates in Europe in a transactional setting. The bank's product line includes access to both debt and equity markets; its research department includes some 90 analysts covering more than 800 European stocks locally.

Landsbanki currently has 40 branches and sub-branches throughout Iceland, plus a wide-ranging network of international correspondent banks. Landsbanki and its subsidiaries have offices operating in 15 different countries, including the major financial centres of Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

, and North American representation in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

, Winnipeg
Winnipeg
Winnipeg is the capital and largest city of Manitoba, Canada, and is the primary municipality of the Winnipeg Capital Region, with more than half of Manitoba's population. It is located near the longitudinal centre of North America, at the confluence of the Red and Assiniboine Rivers .The name...

 and Halifax.

History

In establishing Landsbanki, the Icelandic parliament
Althing
The Alþingi, anglicised variously as Althing or Althingi, is the national parliament of Iceland. The Althingi is the oldest parliamentary institution in the world still extant...

 hoped to boost monetary transactions and encourage the country’s nascent industries. Following its opening on 1 July 1886, the bank's first decades of operation were restricted by its limited financial capacity; it was little more than a savings and loan society
Savings and loan association
A savings and loan association , also known as a thrift, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans...

. Following the turn of the 20th century, however, Icelandic society progressed and prospered as industrialisation
Industrialisation
Industrialization is the process of social and economic change that transforms a human group from an agrarian society into an industrial one...

 finally made inroads, and the bank grew and developed in parallel to the nation. In the 1920s Landsbanki became Iceland's largest bank, and was made responsible for issuing its bank notes. After the issuing of bank notes was transferred to the newly established Central Bank of Iceland
Central Bank of Iceland
The Central Bank of Iceland is the central bank or reserve bank of Iceland. It has served in this capacity since 1961, when it was created by an act of the Alþingi out of the central banking department of Landsbanki Íslands, which had had the sole right of note issuance since 1927 and had...

 in 1961, Landsbanki continued to develop as a commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...

, expanding its branch network in the ensuing decades.

Liberalisation of financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...

, beginning in 1986, opened up new opportunities, which the bank managed to take advantage of despite some economic adversity. In 1997, Landsbanki was incorporated as a limited-liability company, and the ensuing privatisation finally concluded in 2003. Landsbanki then operated as a privately owned bank, competing in a free market, with substantial international activities added to its traditional Icelandic operations.

2008 financial crisis

On October 7, 2008 the Icelandic Financial Supervisory Authority took control of Landsbanki. A press release by the IFSA states that all of Landsbanki's domestic branches, call centres, ATMs and internet operations will be open for business as usual, and that all domestic deposits are fully guaranteed. The Guardian
The Guardian
The Guardian, formerly known as The Manchester Guardian , is a British national daily newspaper in the Berliner format...

reported that the Government had moved quickly to use the sweeping powers granted by the Reykjavik parliament, the night before. The country’s financial regulator said on Tuesday that Landsbanki’s branches would open as usual and that all “domestic deposits” were fully guaranteed. The next day the United Kingdom Chancellor of the Exchequer
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...

 Alistair Darling
Alistair Darling
Alistair Maclean Darling is a Scottish Labour Party politician who has been a Member of Parliament since 1987, currently for Edinburgh South West. He served as the Chancellor of the Exchequer from 2007 to 2010...

 announced that his government would foot the entire bill for British Icesave savers, estimated at £
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...

4 billion, and that he was taking steps to freeze the assets of Landsbanki using the financial freezing-orders provisions of the Anti-terrorism, Crime and Security Act 2001
Anti-terrorism, Crime and Security Act 2001
The Anti-Terrorism, Crime and Security Act 2001 was formally introduced into the Parliament of the United Kingdom on 19 November 2001, two months after the terrorist attacks on New York on 11 September. It received royal assent and came into force on 14 December 2001...

.

Under the Landsbanki Freezing Order 2008, passed on 8 October 2008, Her Majesty's Treasury froze the assets of Landsbanki in the UK, and assets belonging to the Central Bank of Iceland, and the Government of Iceland relating to Landsbanki.

On 9 October 2008 the domestic, Icelandic branch was split off into the "Nýi (= new) Landsbanki"
NBI (bank)
NBI hf. is a state-run bank which operates in Iceland. The organisation was created in October 2008 after the government took control of the insolvent Landsbanki, formerly one of the three largest banks in Iceland...

 and on 27 October 2008 the inability to render payment of deposits was declared for the remaining parts of Landsbanki.

2007 operations and profit

  • Profit in 2007 amounted to ISK 39.9 billion (bn) (€456m) The bank's pre-tax profit was ISK 45.6 bn (€520m). After-tax ROE was 27%.
  • The group's core income (net interest income plus fees and commissions) amounted to ISK 93.4 bn (€1.1bn) in 2007, an increase of 34% over the previous year.
  • Core earnings generation is steadily becoming more diversified; the share of core earnings originating abroad in 2007 was 52%, compared with 49% in 2006.
  • Fees and commissions amounted to ISK 39.4bn (€449m) compared with ISK 28.4bn in 2006.
  • Trading and investment income amounted to ISK 16.6bn (€189m) compared with ISK 19.6bn in 2006.
  • The bank's liquidity position is very strong, with liquid assets of close to €9bn at year-end 2007. Foreign debt maturing in 2008, however, amounts to only €0.8bn.
  • The bank's total assets amounted to ISK 3,058bn (€33.4bn) at year-end 2007 compared with ISK 2,173bn at the beginning of the year.
  • Loans to customers at year-end 2007 totalled ISK 2,023bn (€22.1bn). Customer deposits, on the other hand, amounted to ISK 1,421bn (€15.5bn) or close to ¾ of total lending. Customer deposits have increased by 108% during the year.
  • Landsbanki has no direct or indirect exposure to structured credit obligations (such as CDOs
    Collateralized debt obligation
    Collateralized debt obligations are a type of structured asset-backed security with multiple "tranches" that are issued by special purpose entities and collateralized by debt obligations including bonds and loans. Each tranche offers a varying degree of risk and return so as to meet investor demand...

    , SIVs
    Structured investment vehicle
    A structured investment vehicle was an operating finance company established to earn a spread between its assets and liabilities like a traditional bank...

     and CLOs
    Collateralized debt obligation
    Collateralized debt obligations are a type of structured asset-backed security with multiple "tranches" that are issued by special purpose entities and collateralized by debt obligations including bonds and loans. Each tranche offers a varying degree of risk and return so as to meet investor demand...

    ) in its loan portfolio.
  • The bank's capital ratio (CAD rules) was 11.7% at year-end 2007. Tier 1 capital was 10.1%

2006 operations and profit

  • The bank’s after-tax profit in Q1 2007 was ISK 13.8bn (€154m), as compared with ISK 14.3bn in Q1 2006. Profit in Q4 2006 was ISK 14.1 billion (bn).
  • After-tax return on equity
    Return on equity
    Return on equity measures the rate of return on the ownership interest of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity . ROE shows how well a company uses investment funds to generate earnings growth...

     (ROE) in Q1 was 45.2% as compared with an ROE of 36.3% for 2006 as a whole.
  • The group’s core income (interest margin plus commission income) was ISK 20.6bn (€230m), a YoY quarterly increase of ISK 4.8bn (€54m) or 31%, and an increase of ISK 3.1bn (€35m) or 17% from Q4 2006.
  • Revenue from operations abroad was ISK 12.3bn (€137m), or 42% of total operating revenue.
  • Core income from operations abroad was ISK 10.7bn (€119m) or 52% of the Group’s core income in Q1 2007.
  • The cost-income ratio for the period was 42.2%.
  • Trading gains and investment income amounted to ISK 8.8bn (€98m), as compared with ISK 11.2bn in Q1 2006.
  • Landsbanki’s total assets amounted to ISK 2,317bn as of the end of March 2007. Converted to euros, the bank’s total assets amounted to €26.4bn at the end of March, up from €23.2bn at the beginning of the year.
  • Customer deposits grew by 34% in Q1 2007 to total ISK 913bn (€10.4bn) at the end of March. They represent 62% of total customer lending as compared to 48% at the beginning of this year.
  • The bank's capital adequacy ratio (CAD) was 13.4% at the end of March. Tier 1 capital was 11.7%.

2005 operations and profit

The Bank’s after-tax profit in 2005 was ISK
Icelandic króna
The króna is the currency of Iceland. The króna is technically subdivided into 100 aurar , but in practice this subdivision is no longer used....

 25 billion. This is an increase of 97% over 2004, when its net profit was ISK 12.7 billion.

After tax return on equity
Return on equity
Return on equity measures the rate of return on the ownership interest of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity . ROE shows how well a company uses investment funds to generate earnings growth...

 (ROE) was 45.8%. The Bank’s equity rose from ISK 38 billion at the beginning of the year to ISK 110 billion at year-end. Total assets at year-end amounted to ISK 1,405 billion.

According to a survey by IMG Gallup in December 2005, Landsbanki has a leading share of the domestic individual market, as 30% of individuals surveyed bank with Landsbanki.

At the end of 2005, Landsbanki provided close to 40% of corporate lending in Iceland and for around 60% of companies listed on the Iceland Stock Exchange
Iceland Stock Exchange
NASDAQ OMX Iceland or ICEX was established in 1985 as a joint venture of several banks and brokerage firms on the initiative of the central bank. Trading began in 1986 in Icelandic government bonds, and trading in equities began in 1990. Equities trading increased rapidly thereafter...

, Landsbanki was the principal bank or one of two banks with whom they did business. Landsbanki’s share of equity brokerage in 2005 was 32% and for bonds
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...

 24%.

International operations

The relatively limited size of the Icelandic market
Market
A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers...

 prompted Landsbanki, first among Icelandic commercial banks, to expand and diversify outside of Iceland when it acquired the London-based Heritable Bank in 2000. In 2005, Landsbanki acquired three Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

an securities houses: Teather & Greenwood, located in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

 and Edinburgh
Edinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...

; Kepler Equities, headquartered in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...

; and Merrion Capital Group in Dublin. These subsidiaries dealt in securities and prepared equity research in London, Paris, Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...

, Zurich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...

, Nyon (25km from Geneva
Geneva
Geneva In the national languages of Switzerland the city is known as Genf , Ginevra and Genevra is the second-most-populous city in Switzerland and is the most populous city of Romandie, the French-speaking part of Switzerland...

), Milan
Milan
Milan is the second-largest city in Italy and the capital city of the region of Lombardy and of the province of Milan. The city proper has a population of about 1.3 million, while its urban area, roughly coinciding with its administrative province and the bordering Province of Monza and Brianza ,...

, Madrid
Madrid
Madrid is the capital and largest city of Spain. The population of the city is roughly 3.3 million and the entire population of the Madrid metropolitan area is calculated to be 6.271 million. It is the third largest city in the European Union, after London and Berlin, and its metropolitan...

 and Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...

. Landsbanki's own branches in London and Amsterdam specialised in structured finance
Structured finance
Structured finance is a broad term used to describe a sector of finance that was created to help transfer risk and avoid lawsStructured finance is a broad term used to describe a sector of finance that was created to help transfer risk and avoid laws...

 and commercial finance (asset-based lending
Asset-based lending
In the simplest meaning, asset-based lending is any kind of lending secured by an asset. This means, if the loan is not repaid, the asset is taken. In this sense, a mortgage is an example of an asset-backed loan. More commonly however, the phrase is used to describe lending to business and large...

), while Landsbanki Luxembourg handled private banking
Private banking
Private banking is banking, investment and other financial services provided by banks to private individuals investing sizable assets. The term "private" refers to the customer service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers...

 and wealth management
Wealth management
Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services...

, as well as corporate services.

On 9 August 2007 Landsbanki completed its acquisition of UK investment bank Bridgwell plc. The operations of Teather & Greenwood were combined with those of Bridgewell under the brand name Landsbanki Securities (UK). The acquisition of Bridgewell made Landsbanki the second largest broker to listed companies on the London Stock Exchange measured by number of clients.

The bank’s major subsidiaries
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...

 were:

Landsbanki operated branches in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

, Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...

, Oslo
Oslo
Oslo is a municipality, as well as the capital and most populous city in Norway. As a municipality , it was established on 1 January 1838. Founded around 1048 by King Harald III of Norway, the city was largely destroyed by fire in 1624. The city was moved under the reign of Denmark–Norway's King...

 and Helsinki
Helsinki
Helsinki is the capital and largest city in Finland. It is in the region of Uusimaa, located in southern Finland, on the shore of the Gulf of Finland, an arm of the Baltic Sea. The population of the city of Helsinki is , making it by far the most populous municipality in Finland. Helsinki is...

 and representative offices in Halifax and Winnipeg
Winnipeg
Winnipeg is the capital and largest city of Manitoba, Canada, and is the primary municipality of the Winnipeg Capital Region, with more than half of Manitoba's population. It is located near the longitudinal centre of North America, at the confluence of the Red and Assiniboine Rivers .The name...

, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

; and Tórshavn
Tórshavn
Tórshavn is the capital and largest town of the Faroe Islands. It is located in the southern part on the east coast of Streymoy. To the north west of the town lies the high mountain Húsareyn, and to the southwest, the high Kirkjubøreyn...

, Faroe Islands
Faroe Islands
The Faroe Islands are an island group situated between the Norwegian Sea and the North Atlantic Ocean, approximately halfway between Scotland and Iceland. The Faroe Islands are a self-governing territory within the Kingdom of Denmark, along with Denmark proper and Greenland...

. Since 2006, it offered online savings to United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 customers, trading as Icesave http://www.icesave.co.uk. In 2008, it expanded this service to the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...

, also under the Icesave name.

Icesave

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. Since launched, Icesave grew rapidly and at 31 March 2007 Icesave deposits totalled £2.8 bn with over 80,000 accounts opened.

A key factor in Icesave’s appeal to savers was its interest rate guarantee: The gross Annual Equivalent Rate of Interest (AER) paid on balances over £250 was guaranteed to exceed the Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...

 Base Rate by at least 0.25% until 1 October 2009 and thereafter not to be lower than the Bank of England Base Rate until 1 October 2011. As a result, Icesave quickly became the market leader in internet deposit savings accounts in UK in terms of interest rates.

Icesave operated in the Netherlands from May 2008 until October 2008.

On 7 October 2008 the Icesave UK website announced: "We are not currently processing any deposits or any withdrawal requests through our Icesave internet accounts. We apologise for any inconvenience this may cause our customers. We hope to provide you with more information shortly."

Icesave was declared in default on 8 October 2008, taking Landsbanki with it in its fall.

Sponsorship of sports: Landsbankadeildin

Landsbanki’s support for Icelandic football
Football (soccer)
Association football, more commonly known as football or soccer, is a sport played between two teams of eleven players with a spherical ball...

 is an important aspect of the Bank’s marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...

 and image policy. In September 2005, an agreement was concluded with the Football Association of Iceland
Football Association of Iceland
The Football Association of Iceland is the governing body of football in Iceland. It was founded on 26 March 1947, joined FIFA the same year, and UEFA in 1954. It organizes the football league, Pepsi deild, and the Iceland national football team and Iceland women's national football team...

, under which the Icelandic premier league for both men and women will be called the Landsbanki Premier League (Landsbankadeildin) for the next four seasons. The financial backing for football is, however, primarily directed towards supporting sports for children and youth divisions.

See also

  • Glitnir
    Glitnir (bank)
    Glitnir was an international Icelandic bank. It was created by the state-directed merger of the country's three privately held banks - Alþýðubanki , Verzlunarbanki and Iðnaðarbanki - and one failing publicly held bank - Útvegsbanki - to form Íslandsbanki in 1990...

  • Kaupthing Bank
    Kaupthing Bank
    Kaupthing Bank was an international Icelandic bank, headquartered in Reykjavík, Iceland. It was formed by the merger of Kaupthing and Búnaðarbanki Íslands in 2003 and was the largest bank in Iceland....

  • Central Bank of Iceland
    Central Bank of Iceland
    The Central Bank of Iceland is the central bank or reserve bank of Iceland. It has served in this capacity since 1961, when it was created by an act of the Alþingi out of the central banking department of Landsbanki Íslands, which had had the sole right of note issuance since 1927 and had...

  • Icesave dispute

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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