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Austrian Raiffeisen Sector to Create Risk Fund

Published: January 27, 2014; 07:54 · (Vindobona)

In order to establish a cross-guarantee system, the Austrian Raiffeisen sector has to create a risk fund in the amount of € 400m.

Austrian Raiffeisen Sector to Create Risk Fund / Picture: © Raiffeisen Bank International AG / S. Klimpt

The Basel III framework does not consider interconnections between group members as equity. The underlying reason behind this requirement is the prevention of domino-effects. However, the Basel III framework allows an exception for decentralized banking groups. In case of intra-group connections, banks have to create an institutional protection scheme, which is based on a…

This article includes a total of 248 words.

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