Last April, the Competition Authority published a discussion paper. No. 1/2011, Competition in the banking market. The discussion paper stated that the Competition Authority would update the report on its website once information on the market shares of banks and savings banks in lending was available, but the Central Bank had refused the Competition Authority's request for access to this information. Following a ruling by the Competition Appeal Tribunal No. 4/2011, In the case of the Central Bank of Iceland v. the Competition Authority, the Competition Authority was handed over the requested documents.
Looking at the market share of banks and savings banks for household lending at the end of June 2011, the share of Landsbankinn and Íslandsbanki is between 30-35% each, and that of Arion banki 20-25%. Landsbankinn's share of loans to businesses is, however, by far the largest, at between 35-40%. Byr's share of loans to households is between 10-15%, but 5-10% for loans to businesses. The shares of others are lower. It should be borne in mind that there is considerable uncertainty regarding the valuation of assets in the wake of the collapse. Methods for valuing assets can differ between banks and skew comparisons.
| Bank | Home | Company |
|---|---|---|
| The National Bank | 30-35% | 35-40% |
| Icelandic Bank | 30-35% | 25-30% |
| Arion Bank | 20-25% | 25-30% |
| Start | 10-15% | 5-10% |
| MP Bank | 0-5% | 0-5% |
| Others | 0-5% | 0-5% |
| Total | 100% | 100% |
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