With its overheating economy and rapid growth in the banking sector, how is Iceland likely to fare? The Banker held a round table last month to explore the issues. Michael Imeson reports.

Under pressure from rating agencies, Reykjavik’s top financial brass politely make their case – unlike Venezuela’s premier Hugo Chávez.

On his visit to London last month, Iceland’s prime minister flew into a firestorm as concerns grew over the sharp decline of the krona. But Halldór Ásgrímsson is a man not easily ruffled, as Courtney Fingar found out.

Uncertainty in the Icelandic market has not perturbed Kaupthing Bank from pressing ahead with its expansion into Europe. Stephen Timewell reports.

Kaupthing
Mar Sigurdsson, CEO

Stephen Timewell reports from Reykjavik on Iceland’s rapid transformation into a pan-European banking force. Iceland is a truly amazing country. And it is not just the volcanoes, the geo-thermal springs or even singer Bjork that make it unique.
Iceland boasts a banking sector that almost doubled in asset size last year, an economy that grew at 5.2% in 2004 and an expected 6.6% this year and a GDP per capita amongst the highest in the world at $40,250 in 2004.

What do you call a bank that has doubled in size every year for the past eight years and that jumps 248 places in The Banker’s latest Top 1000 world banks listing to reach 211th place? Some call it a miracle.
Hreidar Mar Sigurdsson, the youthful chief executive of Iceland’s Kaupthing Bank, takes a more modest approach and calls it sustained rapid growth.
But how has Kaupthing catapulted itself onto the world stage, quintupled its balance sheet in the past three years and more than doubled its net earnings in 2004?

India’s banking sector could learn some useful lessons from Iceland’s strong showing in The Banker’s Top 1000 world banks.

The big, profit-hungry banks that have emerged from consolidation in Iceland are now hoping to gain a following abroad, reports Michael Imeson.