Banking in Iceland
Banking in Iceland faced a crisis in 2008, which resulted in the government taking over three of its largest commercial banks.
The short-term liabilities of Icelandic banks in proportion to Iceland's GDP are 211%, as of 11 October 2008, or 480% of the country's national debt, and the average leverage ratio is 1 to 14.
After the banks collapsed, $85 billion in debt, 50,000 people had their savings wiped out. As the Icelandic krona plunged by 80%, capital controls were imposed on businesses, pensioners and individuals that would last till 2017.
