Good governance promotes good work habits and communication, which in turn enhances confidence among shareholders, board of directors, management, employees and other stakeholders. One of the main objectives of the Board of Directors of Íslandsbanki is to continuously develop and strengthen its governance framework reflecting compliance with the best corporate governance practices in the financial market at all times.
Íslandsbanki’s governance practises are consistent with general corporate governance guidelines for entities regulated by official supervisors and regulatory instruments. The regulatory framework for corporate governance practices within Íslandsbanki consists of the law applicable to entities subject to the supervision of the Financial Supervisory Authority (FME) as well as other applicable law and regulations, including those imposed by the FME and the NASDAQ OMX Nordic Exchange in Iceland.
The applicable law includes, inter alia, the Act on Financial Undertakings No. 161/2002 and the Act on Securities Transactions 108/2007, the Act on Competition No. 44/2005 and the Act on Public Limited Companies No. 2/1995, which along with the Íslandsbanki’s Articles of Association lay the foundation for the Bank’s existence and activities.In accordance with Paragraph 3 of Article 19 of the Act on Financial Undertakings No. 161/2002, the Bank is required to observe accepted guidelines on the governance of financial undertakings. The Board of Directors follows the Corporate Governance guidelines issued in March 2012 (4th ed.) by the Iceland Chamber of Commerce, NASDAQ OMX Iceland and Confederation of Icelandic Employers.
Recognition as Exemplary in Corporate Governance
Íslandsbanki is committed to maintaining high standards of governance complying with best governance practices that are in the interest of the organisation. To this end Íslandsbanki engaged an independent party to review the Banks’ corporate governance practices. Subsequently, a formal review was undertaken by the Centre of Corporate Governance, at the Institute for Business Research at the University of Iceland including a comprehensive review of the practices of the Board, Board subcommittees and management. Following Centre of Corporate Governance’s review Íslandsbanki was recognized as “Exemplary in Corporate Governance” in February 2014.
Last updated 4 April 2014.