Credit Costs to Rise in the Wake of Basel III

Politics ♦ 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…

or Log In

Fast News Search
Related News
Stress Test: Erste Group and Raiffeisen Passed, Volksbank Failed (July 15, 2011)
Slow Recovery in Banks’ Lending Activity (July 11, 2011)
Austrian Financial Sector Stable – Remaining Challenges in Particular Business Segments (June 21, 2011)
Fitch Upgrades Individual Ratings of Austrian Banks (May 25, 2011)
Reactions to Treichl’s Criticism (May 17, 2011)
Erste’s Treichl Says Politicians ‘Cowardly’ on Basel III Rules (May 16, 2011)
Capital Requirement of Austria's Banks: € 19bn (April 20, 2011)
Read More
Lending, Loans, Credits, Banking Industry, Basel III, Reinhold Mitterlehner, Andreas Treichl, Othmar Karas, Bernhard Felderer, IHS, FMA Financial Market Authority, Kurt Pribil, Erste Group
Featured
Coronavirus Situation at the Vienna International Centre (VIC): Live-Ticker - Two New Positive COVID-19 Case, Total of 90 Cases
List of National Days of the Home Countries of All Foreign Missions and Delegations in Vienna, Austria
See latest Vindobona Newsletter