Icelandic state faces conflict as bank tax increase looms

The Icelandic state is in a special position over a planned increase in the bank tax because it sets the tax while also owning Landsbankinn, mbl.is reports.

The increase is likely to affect bank customers through higher lending rates, lower deposit rates or increased service fees.

Snorri Jakobsson, owner of Jakobsson Capital, says the tax increase will discourage investment. He also considers it likely to increase interest and transaction costs.