Hypo Tirol: Cut in Lending Prevented

Professional ServicesBanks ♦ Published: December 27, 2011; 19:07 ♦ (Vindobona)

Without the capital increase by the province of Tyrol, the bank would have been forced to cut its lending activities drastically.

Hypo Tirol: Cut in Lending Prevented / Picture: © Vindobona.org

After Hypo Tirol had to report write-offs beyond € 120m, the owner, the province of Tyrol decided to provide funds of € 230m. Otherwise, the bank would have had to reduce lending by € 1.9bn. “The financing capability of the bank would have been questionable.”, board member Johann Kollreider said. According to the CEO, Markus Jochum, the write-offs could even increase.…