Finance of Iceland mainly involves the banking Sector, Stock exchange and the other financial markets.
Iceland finance depends a lot on its banking sector. Iceland has a very strong and well-developed banking sector. There are various kinds of banks that are available in Iceland. Some of these are as follows:
- Central Bank of Iceland
- Savings banks
- Commercial banks
- Agricultural bank
Glitnir, Landsbanki and Kaupþing Bank works as the clearinghouse for the 29 locally run savings banks in Iceland. Sparisjóðirnir bank chain offers banking services throughout Iceland. All major banks are publicly listed with Kauphöll Íslands which is the Iceland Stock Exchange.
The Central Bank of Iceland implements the monetary policies in Iceland. The Central Bank maintains the external reserves. It is also responsible for the issuing of notes and coin, exchange rate matters and so on.
Among the savings and agricultural banks of Iceland, SPRON and BUNADARBANKI ISLANDS HF are the names to reckon with.
Major taxes in Iceland include direct and indirect tax, capital gains, inheritance tax and other taxes such as industrial, property fee and capital taxes. Indirect tax accounted for around 51% of the total tax revenue in Iceland in 2006. Principal direct tax is individual income tax deducted at the rate of 35.72%. Capital gains are taxed for individuals and for companies.
The Iceland Stock Exchange's headquarters is in Reykjavík. It was created in 1985. Trading in Icelandic T-Bonds began in 1986 and trading in equities in 1990. All domestic trading in Icelandic equities, bonds and mutual funds takes place on the ICEX. ICEX has two equities markets. A number of firms across all sectors of the Icelandic economy are listed on the ICEX.
