Skip to main content
Foreign Policy Magazine Foreign Policy Magazine
  • Sign In
  • Give a Gift Give a Gift
  • Subscribe Subscribe Upgrade Upgrade
  • Latest
  • News
  • Analysis
  • Podcasts
  • The Magazine
  • Newsletters
  • FP Live
  • Events
  • FP Analytics
Search Icon

latest

To Help Afghanistan, Engage Its Political Opposition

The Taliban’s rule isn’t inevitable or forever.

Argument |
Richard Fontaine, Lisa Curtis

Recession Fears in Germany as Rate Rises Loom

Inflation remains a concern for central banks in Europe and beyond.

Morning Brief |
Emily Tamkin

Iran’s Regime Plays with Fire in Baluchistan

Stirring sectarian tensions in the country’s poorest province is a dangerous game.

Argument |
Alex Vatanka

Conscription Is Not an Excuse for Iran’s Revolutionary Guard

Here’s why forced enlistment should not be a barrier to listing the Guard as a terrorist organization.

Argument |
Saeid Golkar, Kasra Aarabi
See All Stories
  • FP Events
  • FP Studios
  • FP Analytics
  • FP PeaceGames
  • Subscription Services
  • Group Subscriptions
  • Reprint Permissions
  • Writer’s Guidelines
  • FP Guides – Graduate Education
  • FP For Education
  • FP Archive
  • Buy Back Issues
  • Work At FP
  • Meet the Staff
  • Advertising/Partnerships
  • Country Reports
  • Sign In
  • Give a Gift Give a Gift
  • Subscribe Subscribe Upgrade Upgrade
Search Icon

: Banking Sector Enjoys Remarkable Recovery Banking Sector Enjoys Remarkable Recovery...

SHARE: Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Print this page Share via Email

Sponsored Content

Banking Sector Enjoys Remarkable Recovery

Market players’ fortunes have improved greatly in recent years as more transparency and stricter regulatory environment facilitate the industry’s contribution to innovation and sustainability.

iceland_report_6
iceland_report_6
Gail Johnson/Shutterstock

Over the past decade, a bright new dawn has greeted the Icelandic banking sector following its impressive recovery from the dark days of the 2008 global financial crisis. Although unprecedented at the time, the government’s decision not to nationalize debt-laden banks and instead let them fail, meant the industry bounced back faster than it otherwise would have.

Now noted for its resilience and transparency, the banking and financial services sector is at the heart of the country’s fiscal resurgence and a key conduit for COVID-19 financial assistance packages provided by the government to scores of enterprises and individuals. “We have built a lot of buffers in our system. Our large currency reserves are probably 10 times higher than in the financial crisis. The same applies for the financial sectors, as we have built buffers that have made us stronger. We can give oxygen to the private sector,” states Bjarni Benediktsson.

With a commitment to the principles of responsible banking and sustainable finance, Arion Bank is at the forefront of Iceland’s banking sector thanks to innovative products and a focus on digitalization. Benedikt Gíslason, CEO of Arion Bank notes the country’s heavy-touch regulatory approach means Iceland has faced the pandemic downturn with a solid and strong banking system, one that has not incurred higher credit losses than banks elsewhere in Europe.

"We have a diversified business model that includes aninsurance business and the largest asset manager in Iceland for investment services.”—Benedikt Gíslason, CEO, Arion Bank
"We have a diversified business model that includes aninsurance business and the largest asset manager in Iceland for investment services.”—Benedikt Gíslason, CEO, Arion Bank

“We have a diversified business model that includes an insurance business and the largest asset manager in Iceland for investment services.”—Benedikt Gíslason, CEO, Arion Bank

“The key to responsible banking is to have your operations responsibly run while being profitable,” he says. “Having your house in order comes first and that’s been a primary focus of ours over the last 12-18 months to improve our underlying operating performance. We have been privileged to have a diversified business model that includes an insurance business and the largest asset manager in Iceland for investment services. We also own the largest payment solutions firm in Iceland. In addition to our retail and corporate banking, we are strong in investment banking operation.”

As the leading specialized bank in Iceland and the country’s second largest asset management company and investment services provider, Kvika has gone from strength to strength over the past few years. Offering a selection of tailor-made services. Kvika’s size gives flexibility to utilize its infrastructure – it has offices in Iceland and the U.K. – balance sheet and relationships with other international financial services providers to deliver unique solutions. “Our asset management has over $4 billion in assets compared to a balance sheet of less than $1 billion a decade ago,” reveals CEO, Marinó Örn Tryggvason. “This demonstrates the asset management operation of the bank is larger than retail banking. We have a different business model than the big three banks here.

“The Icelandic pension system is the largest in the world per person and the system is increasing its allocation in foreign assets – around 50% of which are in the U.S. The financial part of the Icelandic economy is closely linked to the U.S. through pension funds’ investments in U.S. firms and investments in asset managers, plus U.S.-based asset management companies. Also, we are at a great place when it comes to digitalization. We launched our first FinTech offering in 2019 and aim to continue on this path with new offerings and solutions. There are many firms globally that have succeeded through this route.”


Iceland: Land of Fire and Ice Forges New Openings

  • Land of Fire and Ice Forges New Openings
  • Banking Sector Enjoys Remarkable Recovery
  • Innovation Island
  • Major Investment to Improve Gateways

Iceland: Land of Fire and Ice Forges New Openings

  • Land of Fire and Ice Forges New Openings
  • Banking Sector Enjoys Remarkable Recovery
  • Innovation Island
  • Major Investment to Improve Gateways

The Full Report

Download the full report.

Loading graphics
Foreign Policy Magazine
Foreign Policy Magazine
  • FP Events
  • FP Studios
  • FP Analytics
  • FP PeaceGames
  • Subscription Services
  • Group Subscriptions
  • Reprint Permissions
  • Writer’s Guidelines
  • FP Guides – Graduate Education
  • FP For Education
  • FP Archive
  • Buy Back Issues
  • Work At FP
  • Meet the Staff
  • Advertising/Partnerships
  • Country Reports
  • Contact Us
  • Privacy Policy
Powered by WordPress VIP
© 2023, Graham Digital Holding Company

Welcome to a world of insight.

Make the most of FP.

Explore the benefits of your FP subscription. Explore the benefits included in your subscription.

Stay updated on the topics you care about with email alerts. Sign up below. Stay updated on the topics you care about with email alerts. Sign up below.

Choose a few newsletters that interest you. Get more insight in your inbox.

Here are some we think you might like. Update your newsletter preferences.

  • Morning Brief thumbnail

    Your guide to the most important world stories of the day. Delivered Monday-Friday.

  • Africa Brief thumbnail

    Essential analysis of the stories shaping geopolitics on the continent. Delivered Wednesday.

  • Latin America Brief thumbnail

    One-stop digest of politics, economics, and culture. Delivered Friday.

  • China Brief thumbnail

    The latest news, analysis, and data from the country each week. Delivered Wednesday.

  • South Asia Brief thumbnail

    Weekly update on developments in India and its neighbors. Delivered Thursday.

  • Situation Report thumbnail

    Weekly update on what’s driving U.S. national security policy. Delivered Thursday.

  • A curated selection of our very best long reads. Delivered Wednesday & Sunday.

  • Evening roundup with our editors’ favorite stories of the day. Delivered Monday-Saturday.

  • A monthly digest of the top articles read by FP subscribers.

Keep up with the world without stopping yours. Keep up with the world without stopping yours.

Download the FP mobile app to read anytime, anywhere. Download the new FP mobile app to read anytime, anywhere.

Download on the App Store
  • Read the magazine
  • Save articles (and read offline)
  • Customize your feed
  • Listen to FP podcasts
Download on the Apple App Store
Download on the Google Play Store

Analyze the world’s biggest events. Analyze the world’s biggest events.

Join in-depth conversations and interact with foreign-policy experts with FP Live logo Join in-depth conversations and interact with foreign-policy experts with FP Live logo

An illustration shows US President Joe Biden surrounded by the foreign-policy issues he has faced in his first two years in office.
An illustration shows US President Joe Biden surrounded by the foreign-policy issues he has faced in his first two years in office.

Biden’s Foreign-Policy Report Card

February 1, 2023  |  12:00pm ET
Register now Ask a Question Ask a Question
✓  

Registered

  |   Ask a Question Ask a Question   |   Add to Calendar
  1. Only FP subscribers can submit questions for FP Live interviews.

    Subscribe

    ALREADY AN FP SUBSCRIBER? LOGIN

  2. Only FP subscribers can submit questions for FP Live interviews.

    Subscribe

    ALREADY AN FP SUBSCRIBER? LOGIN

Two years into his first term, how has U.S. President Joe Biden fared on foreign policy? Is there a clear Biden doctrine? Is America in a stronger or weaker position globally?  The answers ...Show moredepend on whom you ask.  Join FP’s Ravi Agrawal for a lively discussion about the Biden administration’s foreign-policy successes and failures half way through his first term, with Stephen Wertheim, a senior fellow at the Carnegie Endowment for International Peace, and Nadia Schadlow, a senior fellow at the Hudson Institute and a former U.S. deputy national security advisor for strategy during the Trump administration.  

A Russian flag at the Embassy of Russia is seen through a bus stop post in Washington, DC on April 15, 2021. - The US announced sanctions against Russia on April 15, 2021, and the expulsion of 10 diplomats in retaliation for what Washington says is the Kremlin's US election interference, a massive cyber attack and other hostile activity. President Joe Biden ordered a widening of restrictions on US banks trading in Russian government debt, expelled 10 diplomats who include alleged spies, and sanctioned 32 individuals alleged to have tried to meddle in the 2020 presidential election, the White House said. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)
A Russian flag at the Embassy of Russia is seen through a bus stop post in Washington, DC on April 15, 2021. - The US announced sanctions against Russia on April 15, 2021, and the expulsion of 10 diplomats in retaliation for what Washington says is the Kremlin's US election interference, a massive cyber attack and other hostile activity. President Joe Biden ordered a widening of restrictions on US banks trading in Russian government debt, expelled 10 diplomats who include alleged spies, and sanctioned 32 individuals alleged to have tried to meddle in the 2020 presidential election, the White House said. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)

Do U.S. Sanctions Work?

February 6, 2023  |  12:00pm ET
Register now Ask a Question Ask a Question
✓  

Registered

  |   Ask a Question Ask a Question   |   Add to Calendar
  1. Only FP subscribers can submit questions for FP Live interviews.

    Subscribe

    ALREADY AN FP SUBSCRIBER? LOGIN

  2. Only FP subscribers can submit questions for FP Live interviews.

    Subscribe

    ALREADY AN FP SUBSCRIBER? LOGIN

When Washington seeks to curtail Beijing’s ambitions or punish Moscow for its war in Ukraine, it often turns to a familiar tool: sanctions. In the last two years, the Biden administration ...Show morehas deployed unprecedented muscle in the form of sanctions as part of its foreign-policy arsenal.  The question is whether those sanctions work effectively. In which countries are they achieving their desired impact? Where are they less successful? And how does the use of sanctions impact U.S. power more broadly?  Join FP’s Ravi Agrawal in conversation with two experts: Agathe Demarais, the global forecasting director at the Economist Intelligence Unit, and Nicholas Mulder, an assistant professor of history and a Milstein faculty fellow at Cornell University. Together, they will explore whether sanctions are an effective tool to achieve U.S. interests abroad and how the government might improve them.  

Reporters-notebook-FPLive-site-3-2
Reporters-notebook-FPLive-site-3-2

What to Expect From Russia’s Looming Offensive

January 26, 2023 | View Now

Last week, Germany and the United States announced that they would be supplying Ukraine with dozens of Leopard 2 and M1 Abrams tanks to combat Russia’s invasion. Moscow said these tanks we...Show morere more evidence of direct and growing involvement by the West in the conflict. How will the delivery of these tanks change, and potentially escalate, fighting in Ukraine? And is NATO as united as it was earlier in the war? For the latest on the Russia-Ukraine war, watch FP executive editor Amelia Lester’s timely conversation with FP’s team of reporters.

See what’s trending. See what’s trending.

Most popular articles on FP right now. Most popular articles on FP right now.

French President Emmanuel Macron, followed by French Armies Minister Sebastien Lecornu (2nd R), walks past a Dassault Rafale fighter aircraft at the Mont-de-Marsan air base, on Jan. 20.
French President Emmanuel Macron, followed by French Armies Minister Sebastien Lecornu (2nd R), walks past a Dassault Rafale fighter aircraft at the Mont-de-Marsan air base, on Jan. 20.

Europe Doesn’t Need the United States Anymore

Until EU leaders accept that the continent can stand on its own feet and Americans give up the role of global police, dependency on Washington will continue.

Polish army soldiers stand in front of South Korean tanks at the Baltic Container Terminal in Poland.
Polish army soldiers stand in front of South Korean tanks at the Baltic Container Terminal in Poland.

South Korea Could Sweep Up Europe’s Tank Market

Germany’s self-inflicted wound has left defense partners looking for alternatives.

Afghan laborers push a wheelbarrow loaded with food aid at a gymnasium in Kabul.
Afghan laborers push a wheelbarrow loaded with food aid at a gymnasium in Kabul.

To Help Afghanistan, Engage Its Political Opposition

The Taliban’s rule isn’t inevitable or forever.

The European Central Bank is pictured in Germany.
The European Central Bank is pictured in Germany.

Recession Fears in Germany as Rate Rises Loom

Inflation remains a concern for central banks in Europe and beyond.

My Account