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No Nationalization of Austrian Banks

Published: November 2, 2011; 15:23 · (Vindobona)

The head of the Austrian bank holding company Fimbag, Klaus Liebscher, believes that Austrian major banks do not need further capital provided by the state.

No Nationalization of Austrian Banks / Picture: © Vindobona.org

Klaus Liebscher, who conducts Fimbag (Fimbag holds the participation rights of the Austrian state which were provided to Austrian banks in 2009 in order to strengthen their capital base), sees no nationalization of domestic banks. The European banking industry needs a stronger equity base, Liebscher admits. But theRaiffeisen Zentralbank/Raiffeisen Bank International and Erste Group will fight against a partial nationalization, Liebscher states.

But also the Austrian Republic would not be interested in acquiring stakes of domestic banks. The amount of additional equity capital needed amounts to € 3.0bn. By June 2012, systemic banks have to record a core capital quota of 9.0% at least. Raiffeisen´s share is € 1.9bn, VBAG needs another € 980m. Erste Group´s capital requirement is only about € 50m.

“The banks do not have much time. The plans will have to be finished in the coming six weeks. After that, only there are only six month for fulfilling the requirements given by the European Bank Authority.”, Liebscher explains.