Iceland's government has nationalised the country's biggest bank, Kaupthing, after the two other biggest banks were nationalised earlier this week.
The country's financial regulator FME made the announcement as Iceland's economy verges on collapse.
Domestic deposits are fully guaranteed, it said, adding that the bank's domestic branches, call centres, cash machines (ATMs) and internet operations would be open for business as usual.
The move was aimed at guaranteeing a functioning domestic banking system, it said.
The state has now seized control of three of the nation's major banks after Landsbanki and Glitnir were taken over earlier this week.
