Icelandic State Banking Agency (ISBA) commences operation

Press release No. 64/2009

The Minister of Finance has appointed the Board of Directors of ISBA which has now formally commenced its operation. ISBA operates in accordance with Act No. 88/2009 and is intended to control the state’s holding in financial undertakings in compliance with currently applicable law, good administrative and business practices, and the state’s current ownership strategy, and provide them with funding on behalf of the state based on budget allocations.

The Board of ISBA is comprised of Þorsteinn Þorsteinsson, business economist, who is chairman, Sonja María Hreiðarsdóttir, attorney and vice-chairman, and Sigurður B. Stefánsson, economist, with Guðrún Johnsen, economist, as alternate. Although their appointments have no fixed term, ISBA is to conclude its operations no later than five years after its establishment. Among the first tasks of the Board will be to advertise for applications for the position of CEO of ISBA and appoint a selection committee to elect board members of those state-owned financial undertakings controlled by the agency.

In the estimation of the Minister of Finance, the newly appointed ISBA Board has extensive experience and knowledge of the tasks of ISBA, and all directors fulfil the qualification requirements set in Article 6 of the Act establishing the ISBA.

According to this Act, ISBA is to emphasise the reconstruction and development of a robust domestic financial market and promote efficient and healthy competition on this market, ensure transparency in all decision making concerning state participation in financial activities, and ensure active information dissemination to the public.

Ministry of Finance, 23 September 2009