DOCSLIB.ORG

Makropolitik I Kris

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Makropolitik I Kris Makropolitik i kris En vänskrift till anledning med Lars hans av Jonung 70-årsdag Macroeconomy policy in crisis A conference held in honor of Lars Jonung Makropolitik i kris The Knut Wicksell Centre for Financial Studies En vänskrift till Lars Jonung med anledning av hans 70-årsdag The global fi nancial crisis that erupted in 2008 has triggered a lively debate regarding macroeconomic THE KNUT WICKSELL CENTRE FOR FINANCIAL STUDIES policies and fi nancial regulations. This volume contains 15 contributions presented at a conference on “Macroeconomic policy in crisis” held at the Department of Economics at Lund University in October 2014. KNUT WICKSELL POLICY PAPER 2016:1 Most of them deal with the challenges facing the framing of fi scal and monetary policies after the global fi nancial crisis with a focus on the Swedish record. The conference was held to honor Professor Lars Jonung on the occasion of his 70th birthday. He has been active in macroeconomic policy debate in Sweden since the 1970s. The volume ends with an account of his lessons learned from economic policy making. The contributions are in English, Norwegian and Swedish. THE KNUT WICKSELL CENTRE FOR FINANCIAL STUDIES The Knut Wicksell Centre for Financial Studies conducts cutting-edge research in fi nancial economics and related academic disciplines. Established in 2011, the Centre is a collaboration between Lund University School of Economics and Management and the Research Institute of Industrial Economics (IFN) in Stockholm. The Centre supports research projects, arranges seminars, and organizes conferences. A key goal of the Policy papers Centre is to foster interaction between academics, practitioners and students to better understand current topics related to fi nancial markets. The Knut Wicksell Centre for Financial Studies Lund University School of Economics and Management Policy paper 2016:1 LUND UNIVERSITY SCHOOL OF ECONOMICS AND MANAGEMENT Policy paper 2016:1 The Knut Wicksell Centre for Financial Studies Printed by Media-Tryck, Lund, Sweden 2016 1 Makropolitik i kris En vänskrift till Lars Jonung med anledning av hans 70-årsdag Det 34:e Arne Ryde-symposiet 4-5 oktober 2014 Macroeconomic policy in crisis A conference held in honor of Lars Jonung The 34th Arne Ryde conference 4-5 October 2014 The Knut Wicksell Centre For Financial Studies School of Economics and Management Lund University June 2016 2 Lars Jonung framför Holger Crafoords Ekonomicentrum i Lund 3 List of contents 1 Social Capital and Crises with an Application to Iceland ...................................................................... 1 Thorvaldur Gylfason 2 En önskelista för det stabiliseringspolitiska regelverket ...................................................................... 17 Hans Tson Söderström 3 Ekonomisk-politiska institutioner och fördelningspolitiska konflikter ................................................... 31 Johannes Lindvall 4 Finansinspektionen - en god institution? ............................................................................................. 39 Anne-Marie Pålsson 5 Vad är fel med penningpolitiken i Sverige? ......................................................................................... 57 Bengt Assarsson och Mikael Bask 6 Penningpolitikens begränsningar ........................................................................................................ 75 Jesper Hansson 7 Monetary policy after the crisis ............................................................................................................ 89 Stefan Gerlach 8 Kompromissande ekonomer i debatt och rådgivning ........................................................................105 Clas Wihlborg 9 Measurement and Effectiveness of National Fiscal Rules and Governance in the European Union ..........................................................................................................................115 U. Michael Bergman, Michael M. Hutchison och Svend E. Hougaard Jensen 10 Carl Adolph Agardh och ekonomiska kriser ....................................................................................131 Eskil Wadensjö 11 Monetary muddles ...........................................................................................................................145 Axel Leijonhufvud 12 Crisis management and the interplay between monetary authorities in Norway over two centuries ..........................................................................................................................................157 Øyvind Eitrheim och Lars Fredrik Øksendal 13 Norges oljefond ...............................................................................................................................175 Arne Jon Isachsen 14 Har makropolitiker någon nytta av makroteori? ..............................................................................191 John Hassler 15 Mitt liv i kris. Vad har jag lärt mig om ekonomisk politik under de senaste 50 åren? ......................199 Lars Jonung 4 Tack ......................................................................................................................................................215 Lars Jonung Deltagare ..............................................................................................................................................217 Curriculum vitae ....................................................................................................................................219 Lars Jonung Skriftförteckning ....................................................................................................................................221 Lars Jonung Bilder .....................................................................................................................................................241 Från Klas Fregerts kamera 5 Abstract The global financial crisis that erupted in 2008 has triggered a lively debate regarding macroeconomic policies and financial regulations. This volume contains 15 contributions presented at a conference on ”Macroeconomic policy in crisis” held at the Department of Economics at Lund University in October 2014. Most of them deal with the challenges facing the framing of fiscal and monetary policies after the global financial crisis with a focus on the Swedish record. The conference was held to honor Professor Lars Jonung on the occasion of his 70th birthday. He has been active in macroeconomic policy debate in Sweden since the 1970s. He has served as researcher and professor at Lund University and at the Stockholm School of Economics as well as policy advisor in various capacities. He was chief economic advisor to Prime Minster Carl Bildt 1992-94, research advisor at DG ECFIN, the European Commission in Brussels 2000-10 and chairman of the Fiscal Policy Council of Sweden 2012- 13. The volume ends with an account of his lessons learned from economic policy making. The contributions are in English, Norwegian and Swedish. Key words: Crises, Sweden, Riksbank, monetary policy, fiscal policy, monetary rules, fiscal rules and financial regulation. JEL classification: E31, E5, E6, G2 and N1. 6 7 Ur inbjudan till Det 34:de Arne Ryde Symposiet: Makropolitik i kris Ekonomihögskolan i Lund, fredag-lördag 3-4 oktober 2014 Efter den globala finanskrisen har mål, medel och regelverk för makropolitiken satts under debatt. I Sverige är finanspolitikens överskottsmål ifrågasatt samtidigt som oklarheter uppstått kring riksdagens finanspolitiska beslutsregler. Tvivel om Riksbankens förmåga och mandat att samtidigt uppnå låg inflation och finansiell stabilitet är omfattande. Regelverket kring ansvaret för den finansiella stabiliteten är i stöpsleven. Krisen har satt hela europrojektet i gungning. ECB har fått en roll som köpare av statsobligationer och som övervakare av bankväsendet. Ett nytt regelverk för finansiell stabilitet och övervakning av finanspolitiken inom EU är under uppbyggnad. Oberoende finanspolitiska råd håller på att etableras inom euroområdet. Vi bjuder in till ett symposium i Lund för att ge en allsidig belysning av omprövningen av makropolitiken. Syftet med symposiet är att söka svar på frågor som aktualiserats av den globala finanskrisen. Vilka är de nya lärdomarna rörande målen, medlen och regelverken för makropolitiken? Hur bör makropolitikens olika områden samordnas? Vem bör bära ansvaret för finansiell stabilitet? Vad kan vi lära oss från tidigare krisepisoder? Hur bör framtida kriser motverkas? Ett mer personligt motiv till konferensen är att vi vill passa på att uppmärksamma professor Lars Jonung som fyller 70 år i september 2014. Lars har deltagit i debatten och forskningen kring stabiliseringspolitiken sedan 1970-talet. Han medverkade i SNS-gruppen som i mitten på 1980-talet lanserade normpolitiken. Som rådgivare till dåvarande statsminister Carl Bildt kunde han i början på 1990-talet studera makropolitiken från insidan. Detta resulterade bl a i skriften Med backspegeln som kompass. Under eurons första tio år var han på plats i EU-kommissionen och såg eurokrisen växa fram. Under åren 2012-2013 var han ordförande i Finanspolitiska Rådet. Ett centralt tema i hans arbeten är hur kriser har påverkat det ekonomisk-politiska tänkandet. Vi skulle uppskatta om Du kunde delta i vårt symposium i början av oktober i Lund och medverka till att sprida ljus över den period vi lever i när makropolitiken än en gång står under debatt. Symposiespråket är svenska. Vi hoppas Du har möjlighet att presentera ett bidrag på svenska med koppling till
Load more

Recommended publications
  • Kaupthing Bank Hf. Creditors' Report 5 February 2009 Update March 2009
    KAUPTHING BANK HF. CREDITORS' REPORT 5 FEBRUARY 2009 UPDATE MARCH 2009 Disclaimer This report (including all subsequent amendments and additions) was prepared by the Resolution Committee for the creditors of Kaupthing Bank hf. ("the Bank") for information purposes only. It should give creditors an overview of the background, the current situation and the potential steps going forward. The additions and amendments to this report since the previously published versions of this report are intended to give the creditors information on recent developments but are not necessarily and should not be regarded as an exhaustive list of all developments which creditors may consider material. In preparing and updating this report, the Bank has not taken account of the interest of any particular creditor or group of creditors. Where information in this report is based on information from third parties the Bank believes such sources to be reliable. The Bank however accepts no responsibility for the accuracy of its sources. Furthermore, without prejudice to liability for fraud, the Bank accepts no responsibility for the accuracy or completeness of any information contained in this report and, without limitation to the foregoing, disclaims any liability which may be based on the accuracy or completeness of this report. The Bank is under no obligation to make amendments or changes to this publication if errors are found or opinions or information change. The fact that the Bank has made certain additions and amendments does not create any obligation on the Bank to make amendments or changes to this publication in respect of any other developments, errors or changes in opinion or information, regardless of whether such development or changes occur after or before the date of publication of the revised report.
    [Show full text]
  • The Riksbank's Measures During the Global Financial Crisis 2007-2010
    The Riksbank’s measures during the global financial crisis 2007-2010 Riksbank Study, February 2020 KÄNSLIG THE RIKSBANK’S MEASURES DURING THE GLOBAL FINANCIAL CRISIS 2007-2010 3 Contents FOREWORD 4 INTRODUCTION 5 1. THE SWEDISH FINANCIAL SYSTEM WAS SENSITIVE TO GLOBAL ECONOMIC DEVELOPMENTS 7 2. THE CRISIS SPREAD TO SWEDEN 9 3. THE ROLE OF THE RIKSBANK IS TO MAINTAIN PRICE STABILITY, AND TO PROMOTE A SAFE AND EFFICIENT PAYMENT SYSTEM 12 4. THE RIKSBANK EMPLOYED SEVERAL TOOLS DURING THE CRISIS 14 Extraordinary liquidity provisioning 15 Emergency liquidity assistance to specific institutions 22 Swap lines to other central banks 25 5. LESSONS FROM THE CRISIS HAVE SERVED TO STRENGTHEN THE RIKSBANK’S CRISIS PREPAREDNESS 28 REFERENCES 32 ANNEX A. USD LENDING AUCTIONS 34 ANNEX B. SEK LENDING AUCTIONS 35 ANNEX C. PRESS RELEASES 38 4 THE RIKSBANK’S MEASURES DURING THE GLOBAL FINANCIAL CRISIS 2007-2010 Foreword This Riksbank Study describes the measures taken during the global financial crisis 2007- 2010, when the Riksbank provided the Swedish banking system with extraordinary loans, provided emergency liquidity assistance to specific institutions, and limited crisis contagion through swap lines to neighbouring countries. The study complements previously published work on how the Riksbank handled the crisis, by providing a chronological account of the series of events that unfolded in 2007- 2010 and the corresponding Riksbank action. The study also outlines the lessons that the Riksbank learned from the crisis, and how these have served to strengthen our crisis preparedness. The purpose of the study is to contribute to ongoing international initiatives to document case studies from actual financial crises.
    [Show full text]
  • Coping with a Banking Crisis – Rise, Fall and Rebirth of the Icelandic Banking System
    Coping with a banking crisis – Rise, fall and rebirth of the Icelandic banking system Second International Workshop on Managing Financial Instability in Capitalist Economies Reykjavik, Iceland September 23 - 25, 2010 Tryggvi Pálsson, Director Financial Stability Central Bank of Iceland SI-65698 Coping with a banking crisis The Rise 2 Iceland • In the 20th century Iceland went from being one of the poorest economies in Europe to a prosperous one – High but volatile growth, -mostly led by fisheries – From 2/3 of labour force in agriculture to 2/3 in services • In past decades: liberalization, deregulation and privatization • Member of the EEA in 1994 – Free movement of capital – European “passport” for financial institutions headquartered in any country within the area – Common legal and regulatory framework … – … but the safety net, e.g. deposit insurance and LOLR, and crisis management and resolution remained largely national (a poisonous coctail) 3 Banking system: - from sectoral and state owned to fully privatized (2003) - major acquisitions abroad 2004-2005 4 Kaupthing Bank Kaupthing began operations in Faroe Islands Stockholm branch opened Kaupthing Bank A new investment bank, New York office Commenced merged wtih Kaupthing Denmark, opens in was opened operations in London Bunadarbanki Islands Copenhagen Organic 2001 2002 2003 2004 2005 2006 2007 2008 Acquired the Stenghthens its Buy a 20% share in the Indian Finnish securities Norwegian operation by Acquired the British bank financial firm FiNoble Advisors Kaupthing acquired Acquired
    [Show full text]
  • Economic and Monetary Chronicle
    Economic and monetary chronicle January 2010 On 5 January, the president of Iceland refused to sign an act of law amending the Minister of Finance’s authorisation to grant a Treasury guarantee of loans taken by the Depositors’ and Investors’ Guarantee Fund (DIGF) due to Icesave deposit accounts. In so doing, the presi- dent referred the matter to a national referendum. Three days later, Parliament passed an act of law stipulating that the referendum should take place as soon as possible, and no later than 6 March. On 5 January, rating agency Standard and Poor’s announced an un- changed rating for the Republic of Iceland, citing the risk of isolation in credit markets and heavy pressure from abroad to resolve the Icesave dispute. On 5 January, rating agency Fitch Ratings announced a downgrade of Iceland’s sovereign credit ratings for domestic and foreign currency obligations. Iceland’s long-term foreign and domestic currency ratings are now BB+ and BBB+, and the short-term foreign currency rating is B. The country ceiling was lowered from BBB- to BB+. On 6 January, rating agency Moody’s announced that it was keeping Iceland’s sovereign rating unchanged for the present, in spite of the president’s veto of the Icesave guarantee legislation. The agency con- sidered it likely that domestic political instability and external pressure to resolve the Icesave dispute would result, both of which could have a negative effect on Iceland’s credit rating. On 7 January, the Financial Supervisory Authority (FME) granted ISB Holding ehf. permission to own a qualifying holding in Íslandsbanki on behalf of Glitnir Bank hf.
    [Show full text]
  • The Global Financial Crisis: Analysis and Policy Implications
    The Global Financial Crisis: Analysis and Policy Implications Dick K. Nanto, Coordinator Specialist in Industry and Trade July 2, 2009 Congressional Research Service 7-5700 www.crs.gov RL34742 CRS Report for Congress Prepared for Members and Committees of Congress The Global Financial Crisis: Analysis and Policy Implications Summary The world has entered a global recession that is causing widespread business contraction, increases in unemployment, and shrinking government revenues. Some of the largest and most venerable banks, investment houses, and insurance companies have either declared bankruptcy or have had to be rescued financially. Nearly all industrialized countries and many emerging and developing nations have announced economic stimulus and/or financial sector rescue packages, such as the American Recovery and Reinvestment Act of 2009 (P.L. 111-5). Several countries have resorted to borrowing from the International Monetary Fund as a last resort. The crisis has exposed fundamental weaknesses in financial systems worldwide, demonstrated how interconnected and interdependent economies are today, and has posed vexing policy dilemmas. The process for coping with the crisis by countries across the globe has been manifest in four basic phases. The first has been intervention to contain the contagion and restore confidence in the system. This has required extraordinary measures both in scope, cost, and extent of government reach. The second has been coping with the secondary effects of the crisis, particularly the global recession and flight of capital from countries in emerging markets and elsewhere that have been affected by the crisis. The third phase of this process is to make changes in the financial system to reduce risk and prevent future crises.
    [Show full text]
  • Kaupthing Bank
    Kaupthing Bank - COMPANY UPDATE - HOLD Rating Summary and Conclusions Equity value 223,7 bn.ISK Kaupthing Bank acquires FIH Price 407,9 Kaupthing Bank (KB banki) has reached an agreement with Forenings Sparbanken (Swedbank) to Closing price 23.06.2004 429,5 purchase FI Holding, the holding company of the Danish corporate bank FIH. The purchase price amounts to ISK 84 billion (EUR 1,000 million), in addition to which Swedbank will retain part of Contents FIH's own equity. The acquisition will be financed with the issue of new share capital to holders of pre-emptive rights, as well as through subordinated debt. The price-to-book ratio for the Summary and Conclusions.........................................................1 transaction is 1.6. Kaupthing Bank acquires FIH....................................................2 Payment..................................................................................2 FIH is the third-largest bank in Danmark, with total assets close to ISK 800 bn at the end of Q1. It Financing.........................................................................2 was established in 1954 by the Danish state to encourage growth and development of Danish FIH...............................................................................................2 industry. FIH's activities are almost exclusively corporate lending. It holds a 17% share of the Danish Effect on group operations and value...................................3 corporate market and has around 5,000 customers, half of whom have been dealing with the
    [Show full text]
  • Iceland's Financial Crisis
    Order Code RS22988 November 20, 2008 Iceland’s Financial Crisis James K. Jackson Specialist in International Trade and Finance Foreign Affairs, Defense, and Trade Division Summary On November 19, 2008, Iceland and the International Monetary Fund (IMF) finalized an agreement on a $6 billion economic stabilization program supported by a $2.1 billion loan from the IMF. Following the IMF decision, Denmark, Finland, Norway, and Sweden agreed to provide an additional $2.5 billion. Iceland's banking system had collapsed as a culmination of a series of decisions the banks made that left them highly exposed to disruptions in financial markets. The collapse of the banks also raises questions for U.S. leaders and others about supervising banks that operate across national borders, especially as it becomes increasingly difficult to distinguish the limits of domestic financial markets. Such supervision is important for banks that are headquartered in small economies, but operate across national borders. If such banks become so overexposed in foreign markets that a financial disruption threatens the solvency of the banks, the collapse of the banks can overwhelm domestic credit markets and outstrip the ability of the central bank to serve as the lender of last resort. This report will be updated as warranted by events. Background Iceland1 is the smallest economy within the Organization for Economic Cooperation and Development (OECD) with a gross domestic product (GDP) in 2007 of about $11.8 billion, as indicated in Table 1. Historically, Iceland’s economy has been based on marine and energy resources. More recently, Iceland has developed a strong services sector, which accounts for two-thirds of the economic output.
    [Show full text]
  • The 2008 Icelandic Bank Collapse: Foreign Factors
    The 2008 Icelandic Bank Collapse: Foreign Factors A Report for the Ministry of Finance and Economic Affairs Centre for Political and Economic Research at the Social Science Research Institute University of Iceland Reykjavik 19 September 2018 1 Summary 1. An international financial crisis started in August 2007, greatly intensifying in 2008. 2. In early 2008, European central banks apparently reached a quiet consensus that the Icelandic banking sector was too big, that it threatened financial stability with its aggressive deposit collection and that it should not be rescued. An additional reason the Bank of England rejected a currency swap deal with the CBI was that it did not want a financial centre in Iceland. 3. While the US had protected and assisted Iceland in the Cold War, now she was no longer considered strategically important. In September, the US Fed refused a dollar swap deal to the CBI similar to what it had made with the three Scandinavian central banks. 4. Despite repeated warnings from the CBI, little was done to prepare for the possible failure of the banks, both because many hoped for the best and because public opinion in Iceland was strongly in favour of the banks and of businessmen controlling them. 5. Hedge funds were active in betting against the krona and the banks and probably also in spreading rumours about Iceland’s vulnerability. In late September 2008, when Glitnir Bank was in trouble, the government decided to inject capital into it. But Glitnir’s major shareholder, a media magnate, started a campaign against this trust-building measure, and a bank run started.
    [Show full text]
  • The Politics of Bank Bailouts
    The Politics of Bank Bailouts Raphael Reinke Thesis submitted for assessment with a view to obtaining the degree of Doctor of Political and Social Sciences of the European University Institute Florence, 11 November 2014 European University Institute Department of Political and Social Sciences The Politics of Bank Bailouts Raphael Reinke Thesis submitted for assessment with a view to obtaining the degree of Doctor of Political and Social Sciences of the European University Examining Board Prof. Pepper D. Culpepper, European University Institute (Supervisor) Prof. Mark Hallerberg, Hertie School of Governance Prof. Ellen M. Immergut, Humboldt-Universität zu Berlin Prof. Hanspeter Kriesi, European University Institute © Raphael Reinke, 2014 No part of this thesis may be copied, reproduced or transmitted without prior permission of the author. To Heribert, Marianna and Sarah Contents Acknowledgments xiii 1 Crisis, banks and business power 1 Das Bailout 1 Selling out to cronies 4 The argument 7 2 Banking and bailouts 15 Banking – in good times and in bad 15 Threat and urgency 19 Comparing bailouts 21 Bailouts during the recent crisis 26 Conclusion 38 3 Public money, public profit 39 Public money, private profit 41 Beyond private profits 47 Bailouts and voters 50 Evidence from the recent financial crisis 53 Analyzing bailouts quantitatively 55 Results 62 Conclusion 69 4 Structural power of banks and the state 73 Two dimensions of business power 75 Financial crisis as a test case 80 vii viii The British and the American bailouts 82 Bank power:
    [Show full text]
  • Rebranding a Disgraced Organization: a Case Study of the Icelandic Banks
    Rebranding a disgraced organization: A case study of the Icelandic banks Elvar Ólafsson Department of Business Administration Master Thesis in Management Research Spring 2010 LUND UNIVERSITY Abstract Title: Rebranding a disgraced organization: a case study of the Icelandic banks University: Lund University - Sweden Course: Masters Thesis in Business Administration, Programme in Management Research, 30 University Credit Points (30 ECTS). Seminar date: 2010-06-03 Author: Elvar Ólafsson Supervisor: Sverre Spoelstra Keywords: Rebranding, Disgraced Organizations, Corporate Social Responsiveness, Corporate Visual Identity, Customers perception of Image & Reputation Purpose: The purpose of this thesis is to gain understanding of rebranding of a disgraceful organization. It will be a modest attempt gain insight into customer’s perception of a changed identity and how it affects the organization’s image and reputation. Methodology: The present study is qualitative research using semi-structured open ended interviews with empirical data that is approached through interpretative approach. Theoretical perspectives: Relevant theory on rebranding, corporate social responsiveness and corporate visual identity; altogether framed by the focus on the perception of change in the eyes of the customer. Empirical foundation: This paper is based on a case study of the three major banks in Iceland. The empirical material constitutes 14 semi-structured open ended interviews with customers. Additionally, bankruptcy reports, newspaper articles and the banks web sites are analyzed. Summary Findings: The banks rebranding efforts have had little affect on their customers as the general public has lost all trust in the governance of the financial system. My main argument is that although branding and rebranding theories state how and what you should do to be successful, there are situations as in my case that leave the disgraced organization’s rebranding strategies with little power to win back the loyalty of their customers.
    [Show full text]
  • Merger Bunadarbanki and Kaupthing 120403
    Reykjavík, 12 April 2003 Joint press release from the Boards of Directors of Búnadarbanki Íslands hf. and Kaupthing Bank hf. Merger between Búnadarbanki Íslands and Kaupthing Bank The Boards of Directors of Búnadarbanki Íslands hf. and Kaupthing Bank hf. have agreed to propose at shareholders’ meetings in the banks that the companies be merged. The proposed name of the merged bank is Kaupthing Bunadarbanki. A ratio of exchange has been decided whereby shareholders in Kaupthing Bank hf. receive approximately 51.77% in the merged bank and shareholders in Búnadarbanki Íslands receive approximately 48.23%. The bank will be listed on the Iceland Stock Exchange and on Stockholmsbörsen in Sweden. Kaupthing Bunadarbanki will comprise two powerful banks which both enjoy strong market positions in Iceland. The merged bank will be by far the largest bank in Iceland and a leading player in almost all areas of the Icelandic financial market. Kaupthing Bunadarbanki will be the highest-valued listed company on the Iceland Stock Exchange and amongst the ten largest banks in the Nordic countries. The merger will create a powerful financial company and bank providing all-round services in the fields of commercial and investment banking. The bank will operate a total of 36 branches throughout Iceland which will work under the name of Búnadarbanki. It is the intention to considerably strengthen the bank’s commercial banking operations in the near future and the scope of these activities is expected to grow. However, streamlining measures will be taken in those areas of operations where Búnadarbanki Íslands hf. and Kaupthing Bank hf.
    [Show full text]
  • Kaupthing Bank Annual Report 2005 Key Figures
    KAUPTHING BANK ANNUAL REPORT 2005 KEY fiGures EUR millions* 2005 2004 Change Net operating income 1,400 EUR millions Income Statement 1,200 Net interest income 438 219 100% 1,000 Net fee and commission income 300 159 88% 800 Net financial income 499 195 155% 600 Other income 120 25 389% 400 Operating income 1,357 598 127% 200 Operating expenses (465) (283) 64% 0 Impairment (59) (46) 28% 1999 2000 2001 2002 2003 2004 2005 Taxes (150) (51) 196% Minority interest (24) (7) 264% Net earnings Net earnings 659 212 211% 700 EUR millions 600 31.12.2005 01.01.2005 Change 500 Balance Sheet 400 Assets 300 Cash and cash balances with central banks 467 75 520% 200 Loans and advances 23,284 13,824 68% 100 Financial assets measured at fair value 8,198 3,646 125% 0 Financial assets available-for-sale 2 18 -88% 1999 2000 2001 2002 2003 2004 2005 Investments in associates 186 44 325% Other assets 1,877 1,008 86% Total assets Total assets 34,014 18,614 83% 35,000 EUR millions 30,000 Liabilities and equity 25,000 Deposits from credit institutions and central banks 932 389 140% 20,000 Other deposits 6,508 2,421 169% 15,000 Borrowings 20,838 11,598 80% 10,000 Subordinated loans 1,375 690 99% 5,000 Other liabilities and minority interest 1,761 1,728 2% 0 Shareholders' equity 2,600 1,789 45% 1999 2000 2001 2002 2003 2004 2005 Total liabilities and equity 34,014 18,614 83% Shareholders’ equity 3,000 Key Ratios EUR millions 2,500 Cost/income ratio 34.1% 50.2% Return on shareholders' equity 34.0% 22.6% 2,000 Impairment on loans and advances for the year 0.2% 0.5% 1,500 Impairment on loans and advances at year-end 0.8% 1.5% 1,000 CAD ratio 12.2% 14.2% Earnings per share ISK 75.2 35.6 500 Earnings per share diluted ISK 73.9 35.1 0 P/E ratio 9.9 12.4 1999 2000 2001 2002 2003 2004 2005 *All amounts in the annual report are in ISK except on this page and where otherwise stated.
    [Show full text]