FACTBOX - Governments struggle with financial crisis

(Reuters) - Iceland took over its second largest bank on Tuesday and Russia announced an aid package for banks, seeking to limit damage from the global financial crisis.

Following are measures taken by national governments around the world on Tuesday:

ICELAND

Iceland used emergency powers adopted on Monday to dismiss the board of directors of Landsbanki, the island's second largest bank by value, and put the bank in receivership, a minister told state radio.

Battling to stave off national bankruptcy, Iceland also said Russia had agreed to provide it with a 4 billion euro (3.1 billion pound) loan. But Russia's deputy finance minister said no decision had been made.

The central bank said it was pegging the crown to a basket of currencies at a level of 131 crown per euro, saying the move was taken to make its interbank market function. The crown has been in freefall for days as a result of a crisis in the financial system.

Iceland has already part-nationalised its number-three bank Glitnir and passed new legislation to give the government sweeping powers over the banking sector.

BRITAIN

The government held talks with major banks on Monday evening at which the possibility of an injection of public money was discussed, according to a source familiar with the talks.