Austrian Banks Must Downsize in Hungary

Businessn.a. ♦ Published: January 12, 2012; 11:30 ♦ (Vindobona)

Erste Group and Raiffeisen Bank International (RBI) must streamline their operations. Nevertheless, a further capital increase could become necessary.

Austrian Banks Must Downsize in Hungary / Picture: ©

According to market observers, Austrian banks could be forced to increase capital of their Hungarian subsidiaries. The analyst of Macquarie, Thomas Stögner, comments: “A further capital increase cannot be excluded.”

By contrast, Erste Group and RBI are confident that the last capital increase will be sufficient. In October, Erste Group had to transfer € 600m to the…