Sound corporate governance practices promote 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 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 Iceland and SA-Business Iceland.
Recognition as Exemplary in Corporate Governance
Íslandsbanki is committed to maintaining high standards of governance complying with best governance practices. Íslandsbanki was first recognized as “Exemplary in Corporate Governance” in March 2014 by the Center of Corporate Governance at the Institute for Business Research, University of Iceland. The recognition was awarded following a comprehensive review of the practices of the Board, Board subcommittees and management. The recognition was renewed in March 2015 and 2016 and again in February 2017.
The recognition is valid for three years unless there are substantial changes in Board of Directors or ownership of the Bank. The Bank will continue to focus on sound corporate governance and strive to maintain the recognition.
Íslandsbanki‘s Corporate Governance Statement
Annually the bank assesses whether the bank´s governance is consistent with accepted guidelines for corporate governance. Subsequently the bank issues a corporate governance statement in a separate section in the bank’s financial statements, see below. The corporate governance structure is also covered in the bank’s annual report.
Last updated 13 May 2016.