Icelandic banks trail European rivals in competitiveness, says bank chief

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

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

In his address, he called for greater cooperation between businesses and the public sector to identify measures that would improve competitiveness and efficiency.

Ómarsson said Íslandsbanki’s workforce had been cut by half between 2016 and 2025, while the total number of employees at Icelandic banks fell by 13%. Over the same period, public-sector employment increased by 28%.

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