Corporate Governance

Sound corporate governance practices support continuous improvement and effective communication, which builds confidence among shareholders, the Board, Executive Committee, Senior Management Committees, employees and other stakeholders.

Continuous development

One of our main objectives is to continuously develop and strengthen the governance framework and to comply with the best corporate governance practices at all times.

Corporate Governance

Our Corporate Governance Policy is based on recognised guidelines for corporate governance within institutions that are subject to mandatory inspection as well as the appropriate legal and regulatory requirements. These legal requirements include Act No. 161/2002 on financial undertakings, Act No. 108/2007  on Securities Transactions, the Act on Limited Liability Companies No. 2/1995 and the Competition Act No. 44/2005 as well as the bank's Articles of Association. The appropriate legal framework can be accessed on the Alþingi websites. The bank also operates in accordance with the rules and recommendations set out by the Financial Supervisory Authority and NASDAQ OMX Iceland.

Article 19 of Act No. 161/2002 on financial undertakings states that banks should observe accepted guidelines on the governance of financial undertakings. The Íslandsbanki Board follows the guidelines on corporate governance published in May, 2015 (5th edition) by the Iceland Chamber of Commerce, NASDAQ ICELAND and the SA Confederation of Icelandic Enterprise.

Policy for Good Corporate Governance and Decision Making Matrix

The Íslandsbanki Board implemented the Policy for Good Corporate Governance and Decision Making Matrix, which is an effective corporate governance policy. The key registers all major decisions, procedures and processes that could potentially be implemented under specific circumstances. The key outlines specific requirements for all major decision processes such as suitable person(s) and utilising the best information available at any given time.

Decision-making methodology

The key uses the following methodology:

  • All decisions should be beneficial to the bank and its stakeholders, in accordance with current legislation, regulations, the bank's Articles of Association, policy documents and contractual obligations
  • Informed decisions are made in an efficient manner by those parties (shareholders, directors, managers or employees) qualified for the job
  • Decisions are made using the best information available at any given time

Íslandsbanki‘s Corporate Governance Statement

The bank's compliance with accepted guidelines for corporate governance is reviewed annually. The bank subsequently issues a corporate governance statement in a separate section of the bank’s financial statements (see below). The corporate governance structure is also covered in the bank’s Annual Report.

Íslandsbanki’s Corporate Governance Statement for 2018

Íslandsbanki’s Corporate Governance Statement for 2017

Íslandsbanki’s Corporate Governance Statement for 2016

 Íslandsbanki’s Corporate Governance Statement for 2015

 Íslandsbanki’s Corporate Governance Statement for 2014

Corporate Governance Guidelines

Regulatory framework

Íslandsbanki is a financial institution and therefore operates in accordance with the appropriate regulatory framework, pertaining to financial institutions. Laws on financial institutions include Act No. 2/1995 on Public Limited Companies, Act No. 161/2002, on Financial Undertakings, Act No. 108/2007 on Securities Transactions and Act No. 140/2008 on Measures Against Money Laundering and Terrorist Financing

Work procedures

Íslandsbanki's Terms and Conditions are outlined to ensure the bank's compliance with the relevant laws. You can access the main regulations, terms and conditions and other work procedures as well as an overview of the main verdicts and legal remedies for customers here.

Operating procedures

General Terms and Conditions

Code of Conduct

Compensation Policy