Iceland’s Banking Industry Regulatory Bodies Under Scrutiny as Country Shifts to Electronic Payments
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Iceland’s financial system is comprised of a large and interconnected network of banks and non-bank financial institutions (NBFIs) both domestically and internationally. With 10 banks operating in the country - four commercial banks and six savings banks - the sector is dominated by just three commercial banks: Arion banki, Íslandsbanki, and Landsbankinn, which together account for a staggering 95 percent of banking assets.
Cash Use Declines, Electronic Payments Rise
As cash use continues to decline as a percentage of point-of-sale transactions, Iceland’s reliance on electronic payment methods has increased significantly. The debit and credit cards used for the majority of retail transactions rely heavily on international communications with Visa and Mastercard, highlighting the country’s vulnerability to cyber risk.
Regulatory Bodies Take Action
In light of these developments, regulatory bodies in Iceland are working to ensure the stability and security of the financial sector. With a focus on mitigating operational risks and maintaining financial stability, these organizations are playing a crucial role in shaping the future of Iceland’s banking industry.
Key Initiatives:
- Enhancing cyber security measures to protect against potential threats
- Implementing robust risk management practices to mitigate operational risks
- Promoting financial literacy among consumers to encourage responsible banking habits
Country Report Series: Stay Up-to-Date on Iceland’s Financial Sector
Regular updates on the latest trends and developments in Iceland’s financial sector can be found in this country report series. This comprehensive resource provides in-depth analysis and insights into:
- Iceland’s economic sectors
- Financial markets
- Regulatory bodies
Stay informed about the evolving landscape of Iceland’s banking industry and its regulatory bodies with our country reports.