Finance Minister Bjarna Benediktsson likes the merger of Islandsbanki and Kvika banki Hf However, he believes that the case will not be settled until after one to two years, should Islandsbanki accept the merger. This was stated in his case in Silfrin today.
It was reported on Thursday that Islandsbanki had received a letter from Kvika’s board requesting the position of Islandsbanki’s board in order to start merger negotiations.
The board of Islandsbanki will discuss the matter next week and decide on the bank’s next steps.
All good things that improve credit terms
Bjarna likes that the merger may improve credit terms, although of course the merger also means less competition.
“I like everything that is conducive to improving credit terms, as people say will happen in such a merged bank, which should be able to return to households and businesses. More efficient operating units is something that I think our society will benefit from,” says Bjarni and adds:
“On the other side of the scale, of course, there is less competition, fewer players in the market, but there is a limit to what our society can tolerate many large financial institutions.”
The matter will take time
Bjarni pointed out that the Competition Authority will deal with the case, should Islandsbanki accept Kvika’s request.
“I think everyone realizes that the Competition Authority will have to have an opinion on this. My main concern is that it will take a long time, as larger cases have tended to do. That’s why we’re discussing an issue that won’t be resolved until one or two years from now.”
