title: Banking in Iceland
text: # Banking in Iceland
  
  Banking in Iceland faced a crisis in 2008, which resulted in the government taking over three of its largest commercial banks.
  
  The short-term liabilities of Icelandic banks in proportion to Iceland's GDP are 211%, as of 11 October 2008, or 480% of the country's national debt, and the average leverage ratio (assets/net worth) is 1 to 14.
  
  ## History
  
  ### Icelandic financial crisis
  
  In 2008, Iceland's three major privately owned commercial banks defaulted.
  
  ## Major Banks
  
  ### Central Bank
  
  * Seðlabanki Íslands
  
  ### Major Commercial Banks
  
  * Landsbankinn
  * Íslandsbanki
  * Arion banki
  * MP banki
  
  ### Investment Banks
  
  ALMC hf
  
  