Austria: Hard Times for Regional Banks

Politics ♦ Published: December 31, 2013; 13:59 ♦ (Vindobona)

Not only large banks are under pressure. In 2014, Austrian regional banks expect enormous challenges to deal with.

Austria: Hard Times for Regional Banks / Picture: ©

The current frame conditions are neither easy for large nor for small banks. Due to the capital requirements, banks are forced to build up capital and reduce risk-weighted assets. As a result, lending either goes down or becomes more expensive for borrowers. The interest on corporate loans is expected to increase by more than 100 bps in the next two to three…