Banking Industry

Hypo Group: Other Downsizing Unit than Bad Bank?

Rumors about other models than a bad bank have appeared.

January 15, 2014

S&P: Polish Banks to Remain “Strongly Profitable”

In 2014’s outlook on Polish banks rating agency Standard&Poor; announced that Polish banks are expected to benefit from an ongoing economic recovery and remain “strongly profitable”.

January 15, 2014

Hypo Group: No Alternative to Bad Bank

The time pressure on the Austrian government is growing day by day. The nationalized Austrian problem bank urgently needs a bad bank.

January 14, 2014

IMF and EBRD Deeply Concerned Over CESEE

Foreign banks continue to withdraw capital from the region. According to the International Monetary Fund, the development is highly considerable.

January 14, 2014

Raiffeisen Bank International Moves Up a Gear

The second-largest lender in CESEE is in a hurry. According to the news provider Bloomberg, the capital increase may take place in the next few weeks.

January 14, 2014

Czech Republic: Economic Growth Expected to Expand

The Czech Banking Association (CBA) has adjusted its economic forecast and expects a growth rate of 1.9 percent for the Czech economy this year.

January 14, 2014

CESEE: Number of NPL Declining

According to a study by Bank Austria, the number of bad loans is declining in Central and Eastern Europe.

January 14, 2014

Nowotny Sees Growth Potential in Eurozone and CEE

According to Ewald Nowotny, governor of the Austrian National Bank (OeNB), the outlooks for economic upturn in the Eurozone and Central/Eastern Europe have improved significantly compared to only a year ago.

January 14, 2014

Bank Austria Generates Fresh Capital

On Monday, January 13, UniCredit Bank Austria issued its first mortgage bond for 2014 to strengthen its capital base.

January 14, 2014

CESEE: Lack in FDI Causes Modest Economic Growth

The International Monetary Fund (IMF) is cautiously optimistic about economic growth in CESEE.

January 14, 2014

Austria: Expert Paper for Hypo Group’s Bad Bank

An expert paper about possible downsizing options for state-controlled problem bank Hypo Group Alpe Adria is expected to be handed in to the government until the middle of the week.

January 13, 2014

CNB: Significant Increase in Profits

Due to the forex interventions in November last year, the Czech National Bank (CNB) was able to increase its results.

January 13, 2014

Austria: Distribution of Wealth Extremely Unequal

The top one percent of Austrian households possesses more than 50 percent of all investment income.

January 13, 2014

Basel III Framework to be Softened

The Basel Committee´s oversight body has amended the leverage ratio rules. For the banking industry, this step is an important success.

January 13, 2014

Austria: VBAG Not to Receive Further Aids

Ailing banking institute VBAG of the Austrian Volksbanken Group will not be granted further state aids.

January 13, 2014

Fitch: Positive Comment on Raiffeisen Bank International

According to the U.S. rating agency, the planned capital increase is evaluated positively. In certain CESEE market, RBI´s operations will remain challenging, Fitch said.

January 11, 2014

Europe/CESEE: Heavy Trade in Distressed Assets

Until 2018, European lenders will offload about 300bn of bad debts, according to PwC. Above all, U.S. private equity firms are taking the opportunity.

January 11, 2014

RBI: Capital Increase Because of Unsuccessful Partner Search

For Raiffeisen Bank International, the capital increase is nothing else but an emergency solution. The main loser is RBI´s core shareholder, the Austrian Raiffeisen Zentralbank.

January 10, 2014

Austria: Significant Increase in Bank Levy

In 2014, the bank levy is expected to increase substantially. Austrian banks regard the levy as massive competitive disadvantage.

January 10, 2014

Poland: Finance Minister Optimistic About Growth

According to Finance Minister Mateusz Szczurek, economic growth in Poland could exceed three percent year-on-year in 2015.

January 10, 2014

Austria: Hypo Group Looking for New CRO

Deputy CEO and chief risk officer of Hypo Group Wolfgang Edelmüller will resign as of the end of February.

January 10, 2014

RBI: Change in Shareholdings Expected

The announcement to increase capital by Raiffeisen Bank International (RBI) did not come as a surprise. However, experts and investors did not expect such a high volume (up to € 2.5bn) and fear a dilution in shareholdings.

January 10, 2014

Slovenia: 2014 Credit Line of € 7.7bn

On Thursday the Slovenian government adopted a budget financing plan which includes this year’s credit line of up to € 7.7bn.

January 10, 2014

Poland: Key Interest Rate to Remain Unchanged

As expected, the key interest rate will not be changed. According to Marek Belka, governor of the Polish National Bank (NBP), there was no need in monetary interventions.

January 9, 2014

Eurozone: Further Capital Injections at Banks Expected

The Council of the European Central Bank (ECB) is holding a summit today. The low inflation rate in the Eurozone is still a dilemma for the monetary authorities.

January 9, 2014

RBI Expects Growth to Accelerate in 2014

2014 marked by growth recovery, according to RBI Research.

January 9, 2014

Slovenia: Growth through Diplomatic Network

Slovenian Finance Minister Karl Erjavec assured that throught diplomatic network the country’s economy will still be supported.

January 9, 2014

Raiffeisen Bank International to Raise Capital

Austrian RBI will increase capital be € 2.25bn in summer 2014. This step was already long-awaited. The shareholder structure will change substantially.

January 8, 2014

Hungary: SZKB to Take over Hungarian RBI?

Hungarian Economy Minister Mihaly Varga considers it unlikely for Szecheny Commercial Bank (SZKB) to take over the Hungarian affiliate of Raiffeisen Bank International (RBI).

January 8, 2014

Hungary Amending Figures of Budget Deficit

Hungarian Finance and Economy Minister Mihaly Varga announced that the budget deficit of 2013 will be below the target after it was lowered dramatically.

January 8, 2014

Meinl Bank: Plans of Growth in Czech Republic and UK

Meinl Bank has opened a new subsidiary in Prague. Growth plans for the core business in Central and Eastern Europe is well on its way, according to the bank’s officials.

January 7, 2014

Czech Republic: Alarming Increase of Private Bankruptcies

The number of private insolvencies increased by 13 percent and stood at a new record in 2013.

January 7, 2014

Growing Evidence for RBI’s Withdrawal from Hungary

According to media reports, Hungarian partly nationalized Szechenyi Commercial Bank has placed an offer for the take-over of RBI’s Hungarian affiliate.

January 7, 2014

Romania: Slight Increase in FX Reserves

In December 2013 FX reserves increased slightly compared to the previous month.

January 7, 2014

European Union: Private Trading of Banks to be Restricted

The European Union intends to severly restrict risky private trading of banks.

January 7, 2014

Hungary: Erste Group Confident

The third-largest lender in CESEE underlined that the Hungarian subsidiary will not be sold. The Austrian bank is confident to reach the turnaround soon.

January 6, 2014

First Offer for RBI´s Hungarian Subsidiary

The partly nationalized Hungarian lender Szechenyi Bank is interested in the Hungarian subsidiaries of the Austrian banks Erste Group and Raiffeisen Bank International.

January 6, 2014

VBAG: Complete Write-Off Possible

The Austrian state may has to write down its interest completely. Further capital injections are very likely. Also VBAG´s other shareholders will be obliged to provide fresh funds for the ailing bank.

January 4, 2014

Austria: „El Dorado for Borrowers“

According to Bank Austria´s management board member Dieter Hengl, Austria is an oasis for borrowers. Interest rates have reached an all-time low.

January 4, 2014

European Savers in Danger

Already this year, savers in the Eurozone may fear a compulsory tax on deposits, the Danish Saxo Bank says.

January 4, 2014

Eurozone: Number of Bank Credits Keeps Declining

The financial institutes in the Eurozone have been cutting back on granting credits. The lending for both business corporations and private persons has dropped by 2.3 percent.

January 3, 2014

Hungary: MKB Bank Sells Romanian Subsidiary

As announced in a statement Hungarian MKB Bank has sold its entire stake of its Romanian subsidiary.

January 3, 2014

Slovenia: Banking Sector Still in Turmoil

Small banks in Slovenia are reasons for concern in regard to their capital shortfalls.

January 3, 2014

Austria: FMA to Activate Whistleblower Hotline

At the beginning of this year the Financial Market Authority (FMA) in Austria has activated a “whistleblower hotline” for bank insiders to report about potential abuses.

January 3, 2014

Massive Change in Banking Landscape

The business model of banks comes more and more under pressure. In the next years, about the half of the bank shops will be closed, banking expert Hans-Gert Penzel predicts.

January 2, 2014

CEE: Economic Sentiment Cautiously Optimistic

The economic sentiment for Eastern European countries is becoming more optimistic, however, only cautiously. Poland is on top of the list of economists at JP Morgan.

January 2, 2014

Erste Group and Bank Austria Face Lawsuits

Two Austrian lending banks are involved both as plaintiffs and as defendants in bankrupt construction company Alpine’s court trials.

January 2, 2014

Slovenia: FDI to Remain Low in 2014

No improvement in increasing foreign direct investments in Slovenia is expected this year. The country has one of the smallest shares in inward FDI among EU member countries.

January 2, 2014

Czech Republic: Household Debts Increasing

Debts to banks and other financial institutes by Czech households keep on increasing, according to a report by the Czech National Bank (CNB).

January 2, 2014

Austria: Hard Times for Regional Banks

Not only large banks are under pressure. In 2014, Austrian regional banks expect enormous challenges to deal with.

December 31, 2013