Which central bank was founded in Iceland in 1961?

The Central Bank of Iceland was founded in 1961.

It was created by legislation that separated central-bank responsibilities from the National Bank of Iceland. Before 1961, the National Bank had performed both commercial and central-banking functions. The new institution was given responsibility for monetary affairs, currency issuance and official reserves.

The Central Bank of Iceland, known in Icelandic as Seðlabanki Íslands, is responsible for monetary policy, issuing Icelandic króna banknotes and coins, managing foreign reserves and promoting financial stability. It also operates within Iceland's financial-supervision framework. Iceland is not a member of the European Union and does not use the euro; its national currency remains the króna.

The institution is headquartered in Reykjavík. Landsbankinn, Arion Bank and Íslandsbanki are commercial banks, not the country's central bank. In 2020, Iceland's central bank and financial supervisory authority were merged into a broader institutional structure, while the central-bank name and functions remained important.