Icelandic banks lag European peers on competitiveness

Icelandic banks and financial companies are at a competitive disadvantage compared with their European counterparts, Jón Guðni Ómarsson, chair of the Association of Financial Services Companies and CEO of Íslandsbanki, said, according to mbl.is.

Jón Guðni opened an association meeting at Smárabíó on Monday morning on a proposed tax increase for companies in the financial sector. In his address, titled “Higher taxes, lost opportunities?”, he called for greater cooperation between businesses and the government to identify measures that would improve competitiveness and efficiency.

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

Jón Guðni said a higher bank tax and other government measures could further weaken the sector’s competitiveness over the long term.