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
Kingdom of Iceland in order to represent the monarchy. During the first year of World War II, Iceland strictly enforced a position of neutrality and took action against both British and German forces that violated it. On 10 May 1940, Operation "Fork" was launched by the United Kingdom when military forces sailed into Reykjavík harbour and began an invasion of Iceland. The government of Iceland issued a protest against what it called a "flagrant violation" of Icelandic neutrality. On the day of the invasion, Prime Minister Hermann Jónasson read a radio announcement instructing Icelanders to treat the British troops as guests. The Allied