Icelandic Competition Authority Concerned Over Bank Operation

Published February 7, 2013

The Icelandic Competition Authority has expressed concern over the lack of competitive operation policies among the country’s three big banks, Landsbanki, Íslandsbanki, and Arion Banki. According to a new report released by the Icelandic Competition Authority, titled “Fjármálaþjónusta á krossgötum” (PDF link) this is resulting in clients paying higher rates and receiving unfavourable terms in order to cover the banks’ ever-increasing operating expenses.
The report reveals that the operating costs of the banks have been increasing significantly year-over-year since the crash, as the public focused their post-crash attention on loan re-evaluation, which increased the banks profits more than had been expected, RÚV reports.
Wages for bank employees have been steadily increasing since the crash, at a far greater rate than employees in other sectors have been experiencing. Such expenses increased by 15% between 2009 and 2010 in the banking sector, while a comparison made with the increased wages of 26,000 firms in other sectors show an average wage increase of just 6% over the same period. Moreover, on an international scale, the operating expenses of Icelandic banks is considered high, accounting for 2.3% of bank assets, in comparison to the operating costs of small Nordic banks and larger European banks claiming 0.6 – 1.5% of assets going toward operating expenses.


News
Three Reported Sexual Assaults In Westman Islands Last Weekend

Three Reported Sexual Assaults In Westman Islands Last Weekend

by

Three survivors went to the emergency room after being reportedly sexually assaulted at last weekend’s Merchants Holiday Festival in the

News
Daring Jewelry Store Robbery Committed

Daring Jewelry Store Robbery Committed

by

A thief made off with millions in jewelry early yesterday morning from a small store in a Hafnarfjörður shopping centre.

News
Pride Is Back!

Pride Is Back!

by

The annual Reykjavík Pride festival has started, and there’s a lot going on. This year’s programme is loaded with things

News
Whaler Considers Anti-Whaling Petition “A Joke”

Whaler Considers Anti-Whaling Petition “A Joke”

by

Iceland’s primary whaler accused reporters of “lapping up” what he calls misinformation about his hunting of fin whales, and dismissed

News
Ruling Coalition Struggling Against Pirate Party

Ruling Coalition Struggling Against Pirate Party

by

While the Pirate Party took a single-digit dip between polls, the ruling coalition is not gaining much ground. RÚV reports

News
Seal Escapes Zoo, Heads Straight For Campsite

Seal Escapes Zoo, Heads Straight For Campsite

by

A baby seal had itself a small adventure after escaping the zoo last night, replete with some biting involved. RÚV

Show Me More!