Iceland and the International Monetary Fund was to stem capital outflows, to restore confidence in the Icelandic economy and to thus stabilize the Icelandic Krona (ISK) 2008–2011 Icelandic financial crisis. Measures adopted by Iceland included an emergency nationalization of the failing banks, a vote of the Icelandic parliament gave the FME (Icelandic Financial Supervisory Authority) broad authority over the insolvent banks. FME proceeded to audit these banks and to split their assets. Measures were also introduced to increase the minimum capital adequacy ratio of the banks to 10% as a part of the effort to re establish confidence in the economy. As a part of these
History of Iceland stop to that when the war began in September. Iceland demanded Britain allow it to trade with Germany, to no avail. The occupation of Denmark by Nazi Germany began on 9 April 1940, severing communications between Iceland and Denmark. As a result, on 10 April, the Parliament of Iceland took temporary control of foreign affairs (setting up what would be the forerunner of the Ministry for Foreign Affairs) and the Coast Guard. Parliament also elected a provisional governor, Sveinn Björnsson, who later became the Republic's first president. Iceland became "de facto" fully sovereign with these actions. At the time, Icelanders