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S&P: Eastern Subsidiaries of Austrian Banks Most Become More Independent
The U.S. rating agency criticizes that Austrian banks are still weakly capitalized. The economic crisis caused a massive withdrawal of funds in Eastern Europe, S&P says.
S&P: Eastern Subsidiaries of Austrian Banks Most Become More Independent / Picture: © Vindobona.org
Because of the financial crisis, West European banks have withdrawn assets from Eastern Europe, S&P states. The highest capital outflow was observed in Hungary. Assets shifted to Western banks came at 15% of Hungary´s GDP. Even Poland was concerned. The capital outflow in Poland came at 2.0% of GDP. As a result, the banks in Eastern Europe must increase deposits. Moreover, the…
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