Worries about Iceland’s overheating economy and potential risks in its banking system prompted an unusual step this week: the country’s largest bank issued a statement to reassure investors about its liquidity.

Kaupthing said late on Wednesday that its liquid assets of €10.6bn, including listed equities, covered its debt maturing over the next six years and it was “in a good position to meet any type of landing in the Icelandic economy, whether it is hard or soft”.