Central Bank of Iceland
{{Short description|Monetary Authority of Iceland}}{{Use dmy dates|date=February 2014}}
{{Use British English|date=February 2014}}
{{Infobox central bank
|bank_name_in_local = Seðlabanki Íslands
|logo = Seðlabanki Íslands.svg
|logo_size = 120px
|image =
|caption = Headquartes of the bank
|headquarters = Kalkofnsvegur 1, Reykjavík
|coordinates =
|ownership = 100% state ownership{{cite web |last1=Weidner |first1=Jan |title=The Organisation and Structure of Central Banks |url=https://d-nb.info/1138787981/34 |website=Katalog der Deutschen Nationalbibliothek|year=2017|format=PDF}}
|established = {{Start date|1961|04|07|df=yes}}
|president = Ásgeir Jónsson
|leader_title = Governor
|bank_of = Iceland
|currency = Icelandic króna
|currency_iso = ISK
|reserve_requirements =
|borrowing_rate =
|interest_rate_target =
|deposit_rate =
|IOER =
|website = {{URL|cb.is}} {{in lang|en}}
{{URL|sedlabanki.is}} {{in lang|is}}
|preceded = Landsbanki Íslands
|footnotes =
}}
File:Iceland bonds.webp in 2008
{{legend-line|#02529C solid 3px|10 year bonds}}
{{legend-line|#DC1E35 solid 3px|5 year bonds}}
{{legend-line|#929292 solid 3px|2 year bonds}}
]]
The Central Bank of Iceland ({{langx|is|Seðlabanki Íslands}}, {{IPA|is|ˈsɛðlaˌpauŋcɪ ˈistlan(t)s|pron}}) is the central bank or reserve bank of Iceland. It is owned by the Icelandic government, and is administered by a governor and a seven-member supervisory board, elected by the country's parliament following each general election.{{cite web|title=Leadership and organisation of the Central Bank of Iceland|url=http://www.sedlabanki.is/?PageID=189|publisher=www.sedlabanki.is|accessdate=8 May 2012|archive-url=https://web.archive.org/web/20110929125528/http://www.sedlabanki.is/?PageID=189|archive-date=29 September 2011|url-status=dead|df=dmy-all}} It has the sole right to issue notes and coins of Icelandic krónur and to manage the state's foreign currency reserves.
History
The Central Bank of Iceland was created in 1961 by an act of the Alþingi out of the central banking department of Landsbanki Íslands, which had been the island's sole bank of issue since 1927 and had conducted only limited monetary policy.
The Central Bank Act of 1986 eliminated the ability of the Central Bank to regulate the interest rates of commercial banks and savings banks.
Though nominally independent, the Central Bank of Iceland was historically expected to follow the lead of the central government. In 2001, however, a floating exchange rate policy was introduced and since then the Central Bank has been empowered to adopt an inflation target and manage monetary policy so as to achieve price stability independent of the policies of the central government.
In 2015, after the 2008–2011 Icelandic financial crisis, the government of Iceland considered "a revolutionary monetary proposal" to abolish private money creation and to end to fractional-reserve banking.Agence France-Presse, [https://www.telegraph.co.uk/finance/economics/11507810/Iceland-looks-at-ending-boom-and-bust-with-radical-money-plan.html "Iceland looks at ending boom and bust with radical money plan"], The Daily Telegraph, 31 March 2015 (page visited on 13 April 2018). Similar to the Swiss Sovereign Money Initiative, this plan would remove the power of money creation from the commercial banks and give it to the Central Bank of Iceland. The option was not implemented.{{cn|date=December 2024}}
On {{date|2020-1-1}}, the Central Bank of Iceland absorbed the Financial Supervisory Authority, previously an independent institution established in 1999.{{cite web |website=Central Bank of Iceland |url=https://www.cb.is/publications/news/news/2020/01/02/Financial-Supervisory-Authority-and-Central-Bank-of-Iceland-merge/ |date={{date|2020-1-2}} |title=Financial Supervisory Authority and Central Bank of Iceland merge}}
Leadership
| class="sortable wikitable" style="text-align: right;" |
| #
!Governor !Took office !Left office !Tenure length |
|---|
| 1
|style="text-align: left;"|Jóhannes Nordal |1961 |1993 |{{Age in years|1961|1993|sortable=table}} years |
| 2
|style="text-align: left;"|Jón G. Maríasson |1961 |1967 |{{Age in years|1961|1967|sortable=table}} years |
| 3
|style="text-align: left;"|Vilhjálmur Þór |1961 |1964 |{{Age in years|1961|1964|sortable=table}} years |
| 4
|style="text-align: left;"|Sigtryggur Klemensson |1966 |1971 |{{Age in years|1966|1971|sortable=table}} years |
| 5
|style="text-align: left;"|Davíð Ólafsson |1967 |1986 |{{Age in years|1967|1986|sortable=table}} years |
| 6
|style="text-align: left;"|Svanbjörn Frímannsson |1971 |1973 |{{Age in years|1971|1973|sortable=table}} years |
| 7
|style="text-align: left;"|Guðmundur Hjartarson |1974 |1984 |{{Age in years|1974|1984|sortable=table}} years |
| 8
|style="text-align: left;"|Tómas Árnason |1985 |1993 |{{Age in years|1985|1993|sortable=table}} years |
| 9
|style="text-align: left;"|Geir Hallgrímsson |1986 |1990 |{{Age in years|1986|1990|sortable=table}} years |
| 10
|style="text-align: left;"|Birgir Ísleifur Gunnarsson |1991 |2005 |{{Age in years|1991|2005|sortable=table}} years |
| 11
|style="text-align: left;"|Jón Sigurðsson |1993 |1994 |{{Age in years|1993|1994|sortable=table}} years |
| 12
|style="text-align: left;"|Steingrímur Hermannsson |1994 |1998 |{{Age in years|1994|1998|sortable=table}} years |
| 13
|style="text-align: left;"|Finnur Ingólfsson |2000 |2002 |{{Age in years|2000|2002|sortable=table}} years |
| 14
|style="text-align: left;"|Ingimundur Friðriksson |2002 |2003 |{{Age in years|2002|2003|sortable=table}} years |
| 15
|style="text-align: left;"|Jón Sigurðsson |2003 |2006 |{{Age in years|2003|2006|sortable=table}} years |
| 16
|style="text-align: left;"|Eiríkur Guðnason |1994 |2009 |{{Age in years|1994|2009|sortable=table}} years |
| 17
|style="text-align: left;"|Davíð Oddsson |2005 |2009 |{{Age in years|2005|2009|sortable=table}} years |
| 18
|style="text-align: left;"|Ingimundur Friðriksson |2006 |2009 |{{Age in years|2006|2009|sortable=table}} years |
| 19
|style="text-align: left;"|Svein Harald Øygard |2009 |2009 |{{Age in years|2009|2009|sortable=table}} years |
| 20
|style="text-align: left;"|Már Guðmundsson |2009 |2019 |{{Age in years|2009|2019|sortable=table}} years |
| 21
|style="text-align: left;"|Ásgeir Jónsson |2019 |Incumbent |{{Age in years|2019|sortable=table}} years |
See also
References
{{Reflist}}
External links
- [http://www.sedlabanki.is/?pageid=194 Official website] {{Webarchive|url=https://web.archive.org/web/20051119025847/http://www.sedlabanki.is/?pageid=194 |date=19 November 2005 }} {{in lang|en}}
- [http://www.sedlabanki.is/ Official website] {{in lang|is}}
{{Central banks}}
{{Portal bar|Iceland|Business and economics|Banks}}
{{Central Bank by country}}
{{coord|64|08|56|N|21|55|55|W|type:landmark_region:IS|display=title}}
{{authority control}}
Category:Banks established in 1961