Politics

Credit Costs to Rise in the Wake of Basel III

Published: July 20, 2011; 20:00 · (Vindobona)

The new regulatory requirements are expected to increase the cost of credits and to reduce the Austrian banks’ profitability.

Credit Costs to Rise in the Wake of Basel III / Picture: © Calculation

Credit costs might rise by two to three percentage points in Austria due to the introduction of new equity capital regulations for banks (Basel III). “Pressure on interest rates will increase as less capital will be available”, explained Economy Minister Reinhold Mitterlehner (ÖVP) on Wednesday.

“The new capital and liquidity rules will reduce the banks’ profitability…

This article includes a total of 246 words.

or Log In

Fast News Search

Join us to succeed in Vienna! Sign up to read articles for free and to get personalized updates on the events that interest you.

Credit Costs to Rise in the Wake of Basel III

The new regulatory requirements are expected to increase the cost of credits and to reduce the Austrian banks’ profitability.

Join us to succeed in Vienna!
Sign up to read articles for free and to get personalized updates on the events that interest you.