Iceland's government has nationalised the country's biggest bank, Kaupthing, after the two other biggest banks were nationalised earlier this week.
"Based on new legislation, the Icelandic Financial Supervisory Authority (FME) proceeds to take control of Kaupthing to ensure continued commercial bank operations in Iceland,'' the authority said in a statement today as Iceland's economy verges on collapse.
Domestic deposits are fully guaranteed, it said, adding that the bank's domestic branches, call centres, cash machines (ATMs) and internet operations would be open for business as usual.
The move was aimed at guaranteeing a functioning domestic banking system, it said.
AFP
