S&P: Foreign Currency Loans Endanger Austrian Banks

Business › n.a. ♦ Published: September 6, 2012; 19:07 ♦ (Vindobona)

According to the U.S. rating agency, the high volume of foreign currency loans is a big danger for Austria´s banks. Nevertheless, the Austrian banking sector achieved the second best rating.

S&P: Foreign Currency Loans Endanger Austrian Banks / Picture: © Vindobona.org

At the end of the first quarter of 2012, the share in foreign currency loans reached 28%, S&P´s analyst Anna Lozmann said. “In our view, this can lead to higher risks.” Lozmann said. In the short term, there would be no danger as the Swiss franc is pegged to the euro. However, in the long term the high share in foreign currency loans will become a substantial risk factor.…

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