Bank balances were one of the subjects of today’s Islandsbanki morning bulletin. According to the bulletin, the total amount of bank deposits in Iceland and the total banknotes and coins in circulation amount to ISK 1,582 billion. In comparison, the figure was ISK 1,622 billion at the end of 2008 and had grown by ISK 400 billion that year.
The breakdown of money in the economy shows that households were the biggest money holders at the end of March, with roughly ISK 734 billion in bank deposits. Household bank balances increased by ISK 104 billion directly after the banking collapse in autumn 2008 as householders put extra emphasis on saving over spending – but that figure has reduced slightly since.
Households, along with pension funds, had the biggest role to play in 2008’s total deposits increase. Since the banking collapse, most of the Icelandic pension funds have been keeping as much of their total assets in bank accounts as the law allows. Funds may hold up to 10 percent of their assets in savings accounts. At the end of March, the pension funds had ISK 148 billion in bank deposits.
