Icelandic banks lag behind European rivals, Íslandsbanki CEO says

Icelandic banks are less competitive than European banks and financial companies, mbl.is reported, citing Jón Guðni Ómarsson, chairman of the Federation of Financial Companies and CEO of Íslandsbanki.

Ómarsson opened the federation’s meeting at Smárabíó on Monday about a proposed tax increase on companies in the financial sector. His presentation was titled “Higher taxes, lost opportunities?”

He called for greater cooperation between businesses and the public sector to identify measures that would improve competitiveness and efficiency in the system.

Ómarsson said that between 2016 and 2025, the number of Íslandsbanki employees fell by half, while staffing across all Icelandic banks declined by 13%. Over the same period, the number of public-sector jobs increased by 28%.

He said a higher bank tax and other government measures could further weaken competitiveness in the long term.