Iceland bank is in administration

The Guernsey branch of a major Icelandic bank has applied to the island's Royal Court to go into temporary administration.

LandsBanki Guernsey Ltd made the move on Monday night to try to ensure its survival.

The Guernsey Financial Services Commission said the application asked for the administration period to last until 6 January 2009.

Trading in shares in LandsBanki was temporarily halted on Monday.

The trading suspension move, which was made by the Icelandic government, also covers another five of the Iceland's biggest banks and financial firms.

It is anticipated that the Guernsey administration application will help ensure that all depositors at the island branch, including those with no-notice accounts and those locked into fixed-term agreements, have an equal opportunity to have their funds returned.

The administrators will work towards saving the bank as a going concern.

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