Act No. 161/2002, on Financial Undertakings, provides for that banks and credit undertakings are allowed to carry out financial leasing operations. See Art. 20.
Three of the Icelandic banks operate financial leasings departments: Íslandsbanki, Landsbanki and MP banki. Additionally there is one credit undertaking in the leasing business; Lýsing.
They all focus on typical leasing operations, buying cars, business equipment and office housing on behalf of their clients and leasing back to them.
The Financial Supervisory Authority (FME) supervises leasing operations.