VBAG: Call for Further State Aids Likely

Businessn.a. ♦ Published: December 21, 2013; 11:50 ♦ (Vindobona)

The Austrian VBAG (Volksbanken AG), top institute of the Volksbanken sector, still has a substantial capital shortfall.

VBAG: Call for Further State Aids Likely / Picture: © Wikipedia / MrPanyGoff

The weak point of the Austrian banking sector is the nationalized banking sector. At the end of last year, total assets of these banks came at 28% of Austria´s GDP.

After the financial crisis, the Austrian state nationalized Austrian problem banks. The first one was Kommunalkredit, which had to be sold by VBAG in 2008. In order to shift bad…