Top List of Banks in Iceland

Iceland is a country made up of islands in the North Atlantic Ocean, about 1,000 km from Norway. With a population of only 366,425 people, Iceland has some of the world's most fertile farmland and is considered one of the best places to live in the world.

It's not surprising that many people have heard about Iceland as it's a popular tourist destination for those seeking peace and safety. But what are some other reasons why you should consider banking in this tiny island nation? We’ve gathered the best banks in Iceland to make your search a little easier. We’ll give you information on how each bank operates, what they offer, and how they stack up against other banks in Iceland. We hope that this article will help you choose which bank is right for you!

Arion Bank

Arion Bank is an Icelandic commercial bank that was founded in 2008. It is the third-largest financial institution in Iceland, with total assets of ISK 1,218 billion. Arion Bank has a staff of 776 full-time equivalents.

The bank operates in three business segments: Corporate Banking, Retail Banking, and Markets. Arion Bank also offers real estate, pension funds, and investment funds.

Arion Bank's corporate clients include most large companies operating in Iceland and many smaller companies and institutions. The Retail Banking segment primarily comprises individuals, sole proprietorships, and small businesses.

Íslandsbanki hf.

Íslandsbanki hf. is one of the largest banks in Iceland by assets. It provides services to individuals, enterprises, and institutional investors and is also a leader in project finance. Íslandsbanki offers a full range of financial products and services to households, companies, institutions, and governments. The bank's main activities are mortgage lending, retail banking, and investment banking. Íslandsbanki has a branch network in Iceland, UK, and Luxembourg.

The bank's operations are divided into four segments: Corporate Banking, Retail Banking, Treasury, and Property Management. 

Íslandsbanki hf was founded in 1884. Its headquarters is in Reykjavík, with branches throughout Iceland and branches in London (UK) and Luxembourg (EU).

Total Assets: ISK 1,234Bn

Employees: 861 (2017)

Kvika Banki

Kvika Banki serves its clients through Reykjavik, Akureyri, and Egilsstadir. The bank is the market leader in consumer financing—total assets amount to ISK 234 billion as of 31 December 2021. The number of employees totals 135.

The bank offers a wide range of financial services, including corporate and institutional banking, private banking, and retail banking. Kvika is a universal bank that provides companies, private individuals, and institutions.

Kvika's central business area is consumer lending, corporate lending, and investment banking.

Landsbankinn hf.

Landsbankinn is the largest financial institution in Iceland, offering a comprehensive range of services to corporate and institutional clients and retail customers. The Bank was established by law on 22 November 2008 following the old Landsbanki Íslands in the wake of the financial crisis. The new Bank has no connection with the old Landsbanki or its parent company, LBI hf.

Landsbankinn has total assets of ISK 1,677bn and employs around 997 people.

Services offered: 

-Lending for individuals and companies

-Investment services for individuals and companies

-Savings accounts for individuals and companies

-Insurance services for individuals and companies

-Payment services for individuals and companies

Seðlabanki Íslands

Total assets: ISK 113,420 billion

Employees: 290

Services offered: Full range of banking services, including asset management and payment solutions.

The Central Bank of Iceland is the oldest institution in Iceland, established by law on 17 June 1885. The Central Bank's primary function is to formulate and implement monetary policy, but it also issues banknotes and coins and manages Iceland's official foreign exchange reserves. In addition, the Central Bank acts as a banker to the Government and financial institutions and administers exchange controls.

Sparisjóður Austurlands hf

Sparisjóður Austurlands hf was established in 2015, and the bank serves in East Iceland with its headquarters located in Egilsstaðir.

Sparisjóður Austurlands hf offers banking services to individuals and businesses, asset management, and insurance. The bank also provides fund management, brokerage, capital market services, mortgage loans, and consumer loans to individuals.

Total assets: 7,532,39 mln ISK (as of December 31, 2020).

Employees: 95.

Sparisjóður Höfðhverfinga ses.

Sparisjóður Höfðhverfinga ses. was established in 2007. The company is owned by the Confederation of Icelandic Employers (SA) and the Federation of General and Special Workers in Iceland (SGS).

The Company has solid assets, a good reputation, and an excellent credit rating; it is well-positioned to provide financial services to workers in its markets. The Company offers services primarily to employees in the private sector in Iceland, especially those employed by companies that are members of SA or SGS and those used by other companies.

The Company offers a range of financial services, such as loans and savings plans, and insurance products through a subsidiary, Sparisjóðarvörslan ehf., which is 100% owned by the Company.

Total Assets: 6,162,93 mln ISK

Employees: 35

Sparisjóður Strandamanna ses.

Sparisjóður Strandamanna was relaunched in 2008 with the primary objective of offering mutual financial assistance to its members. The main business is operating a savings fund for its members, which provides loans at favorable terms.

Sparisjóður Strandamanna provides various banking services and products for individuals and businesses. It offers different deposit accounts and certificates of deposit, and currency exchanges. It also provides car loans, home improvement loans, consumer loans, student loans, personal loans, travel loans, home mortgages, life insurance, investment advisory services, and payroll services.

Total assets: 5 006,58 mln ISK (2021)

Employees: 45

Sparisjóður Suður-Þingeyinga ses. 

Sparisjóður Suður-Þingeyinga ses. is a general savings bank that was established on 17 July 2009 as an association of local municipalities in South Iceland. The purpose of the savings bank is to provide financial services and products to private individuals, businesses, institutions, and local authorities to foster economic growth and strengthen the financial position of its members.

Assets: 9,848,24 mln ISK

Employees: 29

Services offered: Savings accounts, fixed-term deposits, mortgages and loans, investment funds, securities trading, and foreign currency exchange services.


Q. What is the best bank in Iceland?

A. Landsbankinn

Q. What's the unit of currency in Iceland? 

A. The Icelandic króna (ISK). One hundred aurar make up one króna. Coins are available in denominations of 5, 10, 50, and 100 krónur, and banknotes are available in denominations of 500, 1,000, 2,000, and 5,000 krónur.