Sparisjóðabanki Íslands
Encyclopedia
Icebank is a commercial bank, focusing on wholesale
and investment banking
services to savings bank
s, Icelandic and foreign financial institutions and other large customers. Icebank operates in the areas of trade finance and foreign exchange, payment services, treasury services and funding with the aim of providing outstanding services to a select group of Icelandic and foreign customers. The Bank achieves competitiveness and profitability through specialisation.
Icebank was established in 1986 by the savings banks in Iceland. It is still wholly owned by the 21 savings banks in the country. The original purpose of the Bank was to act as a central institution for the savings banks providing them with a range of services. However, the Bank has always had a portfolio of customers other than savings banks. Traditionally, these customers looked towards the Bank for short-term or long-term credits but the Bank has always stood ready to provide them with all kinds of wholesale and investment banking services.
In 2006, Icebank's owners agreed on a new strategic vision for the Bank. This was considered necessary because of the fundamental changes occurring in the Icelandic banking sector, not least the rapid and successful overseas expansion of the bigger Icelandic banks and the continuous growth of the larger savings banks, which has made them more and more willing to act on their own rather than require the services of Icebank. The Bank will continue to offer its traditional and comprehensive services to the savings banks, but the emphasis will be on providing companies, professional investors and other large customers, both in Iceland and abroad, with a wide range of services, including long-term credits, foreign exchange and derivatives. It also supports Icelandic companies that are building up operations abroad through advice, lending and equity participation, at the same time taking part in various types of syndicated loans and structured finance
both in Iceland and abroad. Thus, the Bank will continue to stay away from the retail market and focus instead on wholesale and investment banking services.
One of the main points of the new strategic vision for Icebank is that ownership will be expanded and the Bank's shares listed on the Iceland Stock Exchange with the aim of raising equity in support of further growth.
Icebank is located in the heart of Reykjavík. It shares offices with the Icelandic Savings Banks' Association and The Savings Banks' Guarantee Fund. There are about 90 employees in the Bank.
It holds a substantial stake in Teris
, having been one of the original seven founders in 1989.
The central theme of the Bank’s new strategic vision is that the future growth of the Bank will come mainly from servicing other customers than the savings banks. The Bank provides companies, professional investors and other large customers, both in Iceland and abroad, with a wide range of services, including long-term credits, foreign exchange and derivatives. It also supports Icelandic companies that are building up operations abroad through advice, lending and equity participation, while at the same time taking part in various types of syndicated loans and structured finance both in Iceland and abroad.
See also: 2008–2011 Icelandic financial crisis
Wholesale banking
Wholesale banking is the provision of services by banks to the likes of large corporate clients, mid-sized companies, real estate developers and investors, international trade finance...
and investment banking
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
services to savings bank
Savings bank
A savings bank is a financial institution whose primary purpose is accepting savings deposits. It may also perform some other functions.In Europe, savings banks originated in the 19th or sometimes even the 18th century. Their original objective was to provide easily accessible savings products to...
s, Icelandic and foreign financial institutions and other large customers. Icebank operates in the areas of trade finance and foreign exchange, payment services, treasury services and funding with the aim of providing outstanding services to a select group of Icelandic and foreign customers. The Bank achieves competitiveness and profitability through specialisation.
Icebank was established in 1986 by the savings banks in Iceland. It is still wholly owned by the 21 savings banks in the country. The original purpose of the Bank was to act as a central institution for the savings banks providing them with a range of services. However, the Bank has always had a portfolio of customers other than savings banks. Traditionally, these customers looked towards the Bank for short-term or long-term credits but the Bank has always stood ready to provide them with all kinds of wholesale and investment banking services.
In 2006, Icebank's owners agreed on a new strategic vision for the Bank. This was considered necessary because of the fundamental changes occurring in the Icelandic banking sector, not least the rapid and successful overseas expansion of the bigger Icelandic banks and the continuous growth of the larger savings banks, which has made them more and more willing to act on their own rather than require the services of Icebank. The Bank will continue to offer its traditional and comprehensive services to the savings banks, but the emphasis will be on providing companies, professional investors and other large customers, both in Iceland and abroad, with a wide range of services, including long-term credits, foreign exchange and derivatives. It also supports Icelandic companies that are building up operations abroad through advice, lending and equity participation, at the same time taking part in various types of syndicated loans and structured finance
Structured finance
Structured finance is a broad term used to describe a sector of finance that was created to help transfer risk and avoid lawsStructured finance is a broad term used to describe a sector of finance that was created to help transfer risk and avoid laws...
both in Iceland and abroad. Thus, the Bank will continue to stay away from the retail market and focus instead on wholesale and investment banking services.
One of the main points of the new strategic vision for Icebank is that ownership will be expanded and the Bank's shares listed on the Iceland Stock Exchange with the aim of raising equity in support of further growth.
Icebank is located in the heart of Reykjavík. It shares offices with the Icelandic Savings Banks' Association and The Savings Banks' Guarantee Fund. There are about 90 employees in the Bank.
It holds a substantial stake in Teris
Teris
Teris is an icelandic software company focusing on servicing the financial sector. Originally founded as Tölvumiðstöð sparisjóðanna it changed its name on March 23 2007 to reflect changes in clientele and ownership....
, having been one of the original seven founders in 1989.
Services
Icebank’s customers fall into two broad categories, i.e. savings banks and other financial institutions on the one hand, and other customers on the other hand. The Bank acts as a central institution for the savings banks, playing the role of a clearing bank and a treasury department for most of them. Furthermore, Icebank has been the backbone of the savings banks’ trade finance and foreign exchange operations. It has participated with them in larger lending projects, either by assuming all the risk itself or acting as a co-lender. Savings banks have always been able to borrow short-term or long-term from Icebank in any currency and place their liquid funds with the Bank. Finally, Icebank provides the savings banks with expertise in various areas, such as accounting, payroll services, legal, trade finance, foreign exchange, money markets, capital markets and lending.The central theme of the Bank’s new strategic vision is that the future growth of the Bank will come mainly from servicing other customers than the savings banks. The Bank provides companies, professional investors and other large customers, both in Iceland and abroad, with a wide range of services, including long-term credits, foreign exchange and derivatives. It also supports Icelandic companies that are building up operations abroad through advice, lending and equity participation, while at the same time taking part in various types of syndicated loans and structured finance both in Iceland and abroad.
Growth and crisis
At the end of 2006 Icebank served as banking institution for most of Iceland's 23 savings banks.See also: 2008–2011 Icelandic financial crisis