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Austria: Hard Times for Regional Banks

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: © Vindobona.org

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…

This article includes a total of 523 words.

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