Editing Economy of Iceland (section)

===Finance===
{{See also|2008–2011 Icelandic financial crisis}}

====Banks====
{{Main|List of banks in Iceland}}

The Icelandic banking system has been completely overhauled after the [[2008 financial crisis]]. There are now three major [[commercial bank]]s: [[Landsbankinn]] (National Bank since 2008), [[Arion Bank]] (formerly [[Kaupthing Bank]]) and [[Islandsbanki]] (formerly Glitnir), and [[Kvika Bank|Kvika banki]] (formerly MP Straumur). There are smaller banks and some savings banks, however they are not publicly traded.

There has been extensive consolidation of smaller banks, with [[Sparisjodur Keflavikur]] being taken over by Landsbanki and Byr being taken over by Islandsbanki. Arion Bank, Islandsbanki, and Kvika Banki are the only banks listed on [[Iceland Stock Exchange]]. Arion Bank is mostly owned by foreign creditors while Landsbanki and Islandsbanki are now wholly owned by the State. The ownership stake of the [[Icelandic State]] in the banks is managed by [[Government agencies in Iceland|Bankasysla rikisins]] (State Financial Investments), which aims to privatise its shares in the banks in coming years.{{when|date=September 2024}}

====Stock market====
Because of historically persistent inflation, historical reliance on fish production and the long-standing public ownership of the commercial banks, equity markets were slow to develop. Nasdaq Iceland, formerly the [[Iceland Stock Exchange]] (XICE) was created in 1985. Trading in Icelandic T-Bonds began in 1986 and trading in equities commenced in 1990. All domestic trading in Icelandic [[stock]]s, [[Bond (finance)|bonds]] and [[mutual fund]]s takes place on Nasdaq Iceland.<ref>{{Cite web |date=2025 |title=Nasdaq Iceland |url=https://www.nasdaq.com/solutions/european-markets/iceland |access-date=February 27, 2025 |website=Nasdaq Iceland}}</ref>

Nasdaq Iceland has used electronic trading systems since its creation. Since 2000, [[SAXESS]], the joint trading system of the [[NOREX]] alliance, has been used. There are currently two equities markets on Nasdaq Iceland. The [[ICEX Main|Main]] Market is the larger and better known of the two. The Alternative Market is a less regulated over-the-counter market. Because of the small size of the market, trading is illiquid in comparison with larger markets. A variety of firms across all sectors of the Icelandic economy are listed on Nasdaq Iceland.<ref>{{Cite web |title=Article - The Iceland Stock Exchange |url=https://icelandexport.is/icelandexport2/english/articles/the_iceland_stock_exchange/ |access-date=2025-02-27 |website=icelandexport.is}}</ref>

The most important [[stock market index]] was the [[OMX Iceland 15]]; however, this index was discontinued after the [[2008 financial crisis]] following a decade in which it had been the worst-performing stock market index in the entire world,<ref>{{Cite journal |last=Gudmundsson |first=Már |date=11 May 2011 |title=The Financial Crisis in Iceland: Reflections on causes, consequences and lessons to be learnt |url=https://web.kamihq.com/web/viewer.html?source=extension_redirect&redirect_type=content_type&file=https://sedlabanki.is/lisalib/getfile.aspx?itemid=8715#https://sedlabanki.is/lisalib/getfile.aspx?itemid=8715 |journal=Central Bank of Iceland}}</ref> being "more or less wiped out."<ref>{{Cite news |date=2016-02-10 |title=How did Iceland clean up its banks? |url=https://www.bbc.com/news/business-35485876 |access-date=2025-02-27 |work=BBC News |language=en-GB}}</ref>

====Other financial markets====
Historically, investors tended to be reluctant to hold Icelandic bonds because of the persistence of high inflation and the volatility of the króna. What did exist was largely limited to bonds offered by the central government. The bond market on the ICEX has boomed since the 2010s, however, largely because of the resale of mortgages as housing bonds.{{facts|date=September 2024}}

A [[mutual fund]] market exists on the ICEX in theory, but no funds are currently listed. A small [[derivatives market]] formerly existed, but was closed in 1999 because of illiquidity.{{fact|date=January 2025}}

By the end of 2018, [[Bitcoin mining]] was expected to consume more electricity in Iceland than all the country's residents combined.<ref>[https://arstechnica.com/tech-policy/2018/02/in-iceland-bitcoin-mining-will-soon-use-more-energy-than-its-residents/?amp=1 In Iceland, bitcoin mining will soon use more energy than its residents]</ref>