Banking in Austria: Difference between revisions
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{{short description|Overview of banking in Austria}} |
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{{unreferenced|date=July 2012}} |
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{{more citations needed|date=April 2023}} |
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[[File:Freyung Banks.jpg|thumb|300px|View of the [[Freyung, Vienna|Freyung]] towards {{ill|Am Hof|de}} in [[Vienna]], with, from left to right, the former head offices of [[Creditanstalt]], [[Niederösterreichische Escompte-Gesellschaft]] (later [[Länderbank]], in the background), [[Anglo-Austrian Bank]], and [[Austro-Hungarian Bank]]]] |
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The banking system in Austria plays a pivotal role in the country's economy, ensuring financial stability and providing essential services to both individuals and businesses. The Austrian banking system is characterized by a three-tier structure, consisting of joint-stock banks, savings banks (Sparkassen), and cooperative banks (Raiffeisenbanken and Volksbanken). |
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The Austrian banking system also includes joint-stock banks, banking houses, and [[private bank]]s, as well as postal savings banks, private savings banks, [[mortgage bank]]s, building societies, and specialized cooperative credit institutions. The most important credit institutions are the joint-stock commercial banks, the two largest of which, the Creditanstalt-Bankverein and the Österreichische Länderbank, were nationalized in 1946; shares representing 40% of the nominal capital of the two were sold to the public in 1957. |
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The central bank, Oesterreichische Nationalbank (OeNB), is responsible for the country's monetary policy and the supervision of the banking sector. The Financial Market Authority (FMA) is the primary regulatory body for the Austrian financial market, including banks, insurance companies, and other financial institutions. |
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On January 12, 1997, the coalition partners, after long and intensive negotiations, agreed to sell Creditanstalt-Bankverein to the indirectly state-owned Bank Austria, which is dominated by the senior coalition party, the [[Social Democratic Party of Austria|Social Democratic Party]] (SPO). The sale created a financial and industrial giant in Austria, which holds about one-quarter of the assets of all financial institutions. |
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The [[International Monetary Fund]] reports that in 2001, currency and demand deposits — an aggregate commonly known as M1 — were equal to $52.9 billion. In that same year, M2 — an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds — was $171.2 billion |
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=== Regulations === |
=== Regulations === |
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Since the introduction of the Kreditwesensgesetz (KWG) in 1979, the boundaries between the various types of credit institutions have gradually become blurred. Many banks have developed into universal banks offering a comprehensive range of banking services. Prior to the 1979 KWG, the Austrian banking system was still governed by the Kreditwesengesetz, which had been in force since October 1, 1938 in Nazi Germany and the associated Austria. The 1979 KWG was created as a result of the increasing liberalization of the banking system and the general trend towards universal banks. The rapid growth and increased activity of Austrian banks abroad made it necessary to adapt to international standards, which was regulated in the 1986 amendment to the law. On January 1, 1994, the KWG was replaced by the new Banking Act (Bankwesensgesetz- BWG), which was drafted in view of EU conformity and also contains improved provisions for creditor and consumer protection. In 2002, the Austrian Financial Market Authority (FMA) was founded, which supervises the Austrian banking sector. Due to the economic interest in a stable financial sector, financial market participants, the financial market infrastructure (stock exchange, securities depository) and securities trading are subject to state supervision. |
Since the introduction of the Kreditwesensgesetz (KWG) in 1979, the boundaries between the various types of credit institutions have gradually become blurred. Many banks have developed into universal banks offering a comprehensive range of banking services. Prior to the 1979 KWG, the Austrian banking system was still governed by the Kreditwesengesetz, which had been in force since October 1, 1938 in Nazi Germany and the associated Austria. The 1979 KWG was created as a result of the increasing liberalization of the banking system and the general trend towards universal banks. The rapid growth and increased activity of Austrian banks abroad made it necessary to adapt to international standards, which was regulated in the 1986 amendment to the law. On January 1, 1994, the KWG was replaced by the new Banking Act (Bankwesensgesetz- BWG), which was drafted in view of EU conformity and also contains improved provisions for creditor and consumer protection. In 2002, the Austrian Financial Market Authority (FMA) was founded, which supervises the Austrian banking sector. Due to the economic interest in a stable financial sector, financial market participants, the financial market infrastructure (stock exchange, securities depository) and securities trading are subject to state supervision. |
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=== Oesterreichische Nationalbank and Oesterreichische Kontrollbank === |
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The central bank of Austria, [[Oesterreichische Nationalbank]] (OeNB), is responsible for the country's monetary policy, the issuance of banknotes, and the supervision of the banking sector. Established in 1816, the OeNB operates as an independent institution within the framework of the European System of Central Banks (ESCB) and the Eurosystem, both of which were established in 1998.<ref>{{Cite web |title=About us - Oesterreichische Nationalbank (OeNB) |url=https://www.oenb.at/en/About-Us.html |access-date=2023-04-10 |website=www.oenb.at}}</ref> |
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The OeNB's primary objective is to maintain price stability and contribute to the stability of the Austrian financial system. In addition to its monetary policy function, the OeNB is also responsible for ensuring the smooth functioning of payment systems, managing foreign exchange reserves, and compiling financial statistics. |
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| ⚫ | Great importance is attached in Austria to the Oesterreichische Kontrollbank Aktiengesellschaft (OeKB). It is Austria's central financial and information service provider for the export industry and the capital market. Its services are available to companies and financial institutions as well as institutions of the Republic of Austria. The services of OeKB include Export Services, Capital Market Services for stock exchanges, issuers, financial service providers and investors as well as Energy Market Services for the electricity and gas market. Furthermore, OeKB is a sought-after issuer on the international bond market. |
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=== OeKB (Austrian central bank) === |
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The [[Oesterreichische Nationalbank]], Austria's central bank, was founded in 1816. After being taken over by the German Reichsbank in 1938, it was re-established on July 3, 1945. The bank is a corporation with capital shares fixed by law at $150 million; 100% of the shares are, by law, held by the Austrian government. The central bank and the bank of issue, it preserves the domestic purchasing power of the Austrian currency and its value in terms of stable foreign currencies, and controls external transactions affecting the balance of payments. It also sets reserve requirements for credit institutions. |
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=== Financial Market Authority === |
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| ⚫ | Great importance is attached in Austria to the |
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The Financial Market Authority (FMA) is the primary regulatory body for the Austrian financial market, responsible for supervising banks, insurance companies, pension funds, and other financial institutions.<ref>{{Cite web |title=Financial Market Supervision |url=https://bmf.gv.at/en/topics/financial-sector/financial-market-supervision.html |access-date=2023-04-10 |website=bmf.gv.at |language=en}}</ref> Established in 2002, the FMA aims to ensure the stability, transparency, and integrity of the Austrian financial market. The FMA operates as an independent, integrated authority, working closely with the OeNB to maintain a stable and reliable financial system.<ref>{{Cite web |title=FMA |url=https://www.fma.gv.at/en/}}</ref> |
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=== Largest banks in Austria === |
=== Largest banks in Austria === |
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=== Notable |
=== Notable bankers in Austria === |
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The following former and current bankers have made an important contribution to the development of the Austrian banking industry and continue to develop it in their position as CEO: |
The following former and current bankers have made an important contribution to the development of the Austrian banking industry and continue to develop it in their position as CEO: |
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* [[:de: |
* [[:de:Gerhard Randa|Gerhard Randa]]: long-standing CEO [[UniCredit Bank Austria|Unicredit Bank Austria]]; CEO of [[Sberbank Europe Group|Sberbank Europe AG]] |
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* [[:de: |
* [[:de:Andreas Mitterlehner|Andreas Mitterlehner]]: General Director of Hypo Landesbank Upper Austria for 16 years |
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* [[:de: |
* [[:de:Peter Bosek|Peter Bosek]] long-standing Chairman of the Management Board of [[Erste Group|Erste Bank]] and Member of the Management Board of Erste Bank Groupe |
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* Helmut Hardt: long-standing member of the Management Board and also CEO of Wiener Privatbank SE |
* Helmut Hardt: long-standing member of the Management Board and also CEO of Wiener Privatbank SE |
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* [[:de: |
* [[:de:Ludwig Scharinger|Ludwig Scharinger]]: he was from 1985 to 2012 General Director and Chairman of the Board of [[Raiffeisenlandesbank Oberösterreich|Raiffeisenlandesbank]] Oberösterreich |
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* Alfred Reiter: Member of the Management Board of Investkredit Bank AG from 1976-2001, also their Chairman and for the last 7 years also active as General Manager. |
* Alfred Reiter: Member of the Management Board of Investkredit Bank AG from 1976-2001, also their Chairman and for the last 7 years also active as General Manager. |
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* [[:de: |
* [[:de:Erwin Hameseder|Erwin Hameseder]]: former chairmen of the Board and General Manager of RLB NÖ-Wien. Since 2012 Chairman of Raiffeisen-Holding NÖ-Wien |
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* [[:de: |
* [[:de:Andreas Treichl|Andreas Treichl]]: long-term CEO of Erste Bank, 2008 to 2020 CEO of [[Erste Group]] Bank AG |
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* Robert Ulm: CEO of [[Hello bank!|Hello bank]]!, more than 20 years of experience in the Austrian financial industry and online brokerage. |
* Robert Ulm: CEO of [[Hello bank!|Hello bank]]!, more than 20 years of experience in the Austrian financial industry and online brokerage. |
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* Robert Zadrazil: CEO of Bank-Austria since 2016 and President of the Association of Austrian Banks and Bankers. |
* Robert Zadrazil: CEO of Bank-Austria since 2016 and President of the Association of Austrian Banks and Bankers. |
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* Gerda Holzinger-Burgstaller: will be the new CEO of Erste Bank Austria in 2021, also acting as CFO and COO |
* Gerda Holzinger-Burgstaller: will be the new CEO of Erste Bank Austria in 2021, also acting as CFO and COO |
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* Heinrich Schaller: Chairman of the Board of [[Raiffeisenlandesbank Oberösterreich]] AG and General Director of RLB |
* Heinrich Schaller: Chairman of the Board of [[Raiffeisenlandesbank Oberösterreich]] AG and General Director of RLB |
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* [https:// |
* [https://dunaj-consulting.com/igor-strehl Igor Strehl]: long-standing CEO of [[VTB Bank (Austria) AG|VTB Bank]] (Austria) AG (former [[Donau Bank AG]]) and a board member of [[Sberbank Europe Group|Sberbank Europe AG]] (former Volksbank International AG) |
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* Erich Hampel |
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* [https://www.bloomberg.com/profile/person/18496710 Anas Abuzaakouk]: CEO for [[BAWAG P.S.K.|BAWAG]] Group AG and Chairman-Management Board & CEO for [[BAWAG P.S.K.]] AG (a subsidiary of BAWAG Group AG). He is also on the board of easybank AG. |
* [https://www.bloomberg.com/profile/person/18496710 Anas Abuzaakouk]: CEO for [[BAWAG P.S.K.|BAWAG]] Group AG and Chairman-Management Board & CEO for [[BAWAG P.S.K.]] AG (a subsidiary of BAWAG Group AG). He is also on the board of easybank AG. |
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=== Neobank in Austria === |
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The neobank industry in Austria is an emerging sector in the country's financial landscape, as digital banking services continue to gain traction among consumers seeking convenience, simplicity, and innovation. Neobanks are digital-first banks that offer a range of financial services, such as personal accounts, loans, and payment services, primarily through mobile and web applications, with little or no reliance on physical branches. |
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Key Players in the Austrian Neobank Industry: |
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# [[N26]]: A prominent German neobank, N26 has expanded its operations to Austria<ref>{{Cite web |title=German online bank N26 to launch crypto trading in Austria |url=https://finance.yahoo.com/news/german-online-bank-n26-launch-083226067.html |access-date=2023-04-10 |website=Yahoo Finance |language=en-US}}</ref> |
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# [[Bank99]]: A subsidiary of the Austrian Post, Bank99 is a digital bank targeting both consumers and businesses, offering services such as current accounts, loans, and investment products. Bank99 combines the digital-first approach of neobanks with access to physical branches in post offices across Austria. |
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==Stock exchange== |
==Stock exchange== |
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A special decree of Empress [[Maria Theresa]] (August 1, 1771) provided for the establishment of a [[stock exchange]] in Vienna. From the mid-19th century to the beginning of [[World War I]], it was the main capital market of middle and eastern Europe, and from 1918 to 1938, it had continuous international importance as an equity market for the newly founded nations originating from the former monarchy. The exchange also deals in five Austrian and seven foreign investment certificates. The [[Austrian Traded Index]] has grown steadily in the past few years, growing 8.71% in 2002, and |
A special decree of Empress [[Maria Theresa]] (August 1, 1771) provided for the establishment of a [[stock exchange]] in Vienna. From the mid-19th century to the beginning of [[World War I]], it was the main capital market of middle and eastern Europe, and from 1918 to 1938, it had continuous international importance as an equity market for the newly founded nations originating from the former monarchy. The exchange also deals in five Austrian and seven foreign investment certificates. The [[Austrian Traded Index]] has grown steadily in the past few years, growing 8.71% in 2002, and |
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averaging a growth rate of 10.15% in the past five years. Market capitalization as of December 2004 stood at $85.815 billion, with the index up 57.4% at 2,431.4 from the previous year. There were 99 companies listed on the [[Wiener |
averaging a growth rate of 10.15% in the past five years. Market capitalization as of December 2004 stood at $85.815 billion, with the index up 57.4% at 2,431.4 from the previous year. There were 99 companies listed on the [[Wiener Börse]] AG in 2004. |
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==See also== |
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* [[List of banks in Austria]] |
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==References== |
==References== |
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{{reflist}} |
{{reflist}} |
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[[Category:Banking in Austria| ]] |
[[Category:Banking in Austria| ]] |
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{{Austria-stub}} |
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Revision as of 09:20, 22 May 2024
 | This article needs additional citations for verification. (April 2023) |
The banking system in Austria plays a pivotal role in the country's economy, ensuring financial stability and providing essential services to both individuals and businesses. The Austrian banking system is characterized by a three-tier structure, consisting of joint-stock banks, savings banks (Sparkassen), and cooperative banks (Raiffeisenbanken and Volksbanken).
The central bank, Oesterreichische Nationalbank (OeNB), is responsible for the country's monetary policy and the supervision of the banking sector. The Financial Market Authority (FMA) is the primary regulatory body for the Austrian financial market, including banks, insurance companies, and other financial institutions.
Banking system
Regulations
Since the introduction of the Kreditwesensgesetz (KWG) in 1979, the boundaries between the various types of credit institutions have gradually become blurred. Many banks have developed into universal banks offering a comprehensive range of banking services. Prior to the 1979 KWG, the Austrian banking system was still governed by the Kreditwesengesetz, which had been in force since October 1, 1938 in Nazi Germany and the associated Austria. The 1979 KWG was created as a result of the increasing liberalization of the banking system and the general trend towards universal banks. The rapid growth and increased activity of Austrian banks abroad made it necessary to adapt to international standards, which was regulated in the 1986 amendment to the law. On January 1, 1994, the KWG was replaced by the new Banking Act (Bankwesensgesetz- BWG), which was drafted in view of EU conformity and also contains improved provisions for creditor and consumer protection. In 2002, the Austrian Financial Market Authority (FMA) was founded, which supervises the Austrian banking sector. Due to the economic interest in a stable financial sector, financial market participants, the financial market infrastructure (stock exchange, securities depository) and securities trading are subject to state supervision.
Oesterreichische Nationalbank and Oesterreichische Kontrollbank
The central bank of Austria, Oesterreichische Nationalbank (OeNB), is responsible for the country's monetary policy, the issuance of banknotes, and the supervision of the banking sector. Established in 1816, the OeNB operates as an independent institution within the framework of the European System of Central Banks (ESCB) and the Eurosystem, both of which were established in 1998.[1]
The OeNB's primary objective is to maintain price stability and contribute to the stability of the Austrian financial system. In addition to its monetary policy function, the OeNB is also responsible for ensuring the smooth functioning of payment systems, managing foreign exchange reserves, and compiling financial statistics.
Great importance is attached in Austria to the Oesterreichische Kontrollbank Aktiengesellschaft (OeKB). It is Austria's central financial and information service provider for the export industry and the capital market. Its services are available to companies and financial institutions as well as institutions of the Republic of Austria. The services of OeKB include Export Services, Capital Market Services for stock exchanges, issuers, financial service providers and investors as well as Energy Market Services for the electricity and gas market. Furthermore, OeKB is a sought-after issuer on the international bond market.
Financial Market Authority
The Financial Market Authority (FMA) is the primary regulatory body for the Austrian financial market, responsible for supervising banks, insurance companies, pension funds, and other financial institutions.[2] Established in 2002, the FMA aims to ensure the stability, transparency, and integrity of the Austrian financial market. The FMA operates as an independent, integrated authority, working closely with the OeNB to maintain a stable and reliable financial system.[3]
Largest banks in Austria
The largest Austrian credit institutions by balance sheet total in 2018
| Ranking 2018 | Bank | Balance sum (Billions) |
| 1 | Erste Group Bank AG | 236,79 |
| 2 | Raiffeisen Bank International AG - RBI | 140,12 |
| 3 | UniCredit Bank Austria AG | 99,03 |
| 4 | BAWAG Group AG | 44,70 |
| 5 | Raiffeisenlandesbank Oberösterreich AG | 41,99 |
| 6 | Raiffeisenlandesbank Niederösterreich-Wien AG | 26,97 |
| 7 | Oberbank AG | 22,21 |
| 8 | Steiermärkische Bank und Sparkassen AG | 15,77 |
| 9 | Raiffeisen-Landesbank Steiermark | 15,12 |
| 10 | Hypo NOE Landesbank für Niederösterreich und Wien AG | 14,06 |
Notable bankers in Austria
The following former and current bankers have made an important contribution to the development of the Austrian banking industry and continue to develop it in their position as CEO:
- Gerhard Randa: long-standing CEO Unicredit Bank Austria; CEO of Sberbank Europe AG
- Andreas Mitterlehner: General Director of Hypo Landesbank Upper Austria for 16 years
- Peter Bosek long-standing Chairman of the Management Board of Erste Bank and Member of the Management Board of Erste Bank Groupe
- Helmut Hardt: long-standing member of the Management Board and also CEO of Wiener Privatbank SE
- Ludwig Scharinger: he was from 1985 to 2012 General Director and Chairman of the Board of Raiffeisenlandesbank Oberösterreich
- Alfred Reiter: Member of the Management Board of Investkredit Bank AG from 1976-2001, also their Chairman and for the last 7 years also active as General Manager.
- Erwin Hameseder: former chairmen of the Board and General Manager of RLB NÖ-Wien. Since 2012 Chairman of Raiffeisen-Holding NÖ-Wien
- Andreas Treichl: long-term CEO of Erste Bank, 2008 to 2020 CEO of Erste Group Bank AG
- Robert Ulm: CEO of Hello bank!, more than 20 years of experience in the Austrian financial industry and online brokerage.
- Robert Zadrazil: CEO of Bank-Austria since 2016 and President of the Association of Austrian Banks and Bankers.
- Gerda Holzinger-Burgstaller: will be the new CEO of Erste Bank Austria in 2021, also acting as CFO and COO
- Heinrich Schaller: Chairman of the Board of Raiffeisenlandesbank Oberösterreich AG and General Director of RLB
- Igor Strehl: long-standing CEO of VTB Bank (Austria) AG (former Donau Bank AG) and a board member of Sberbank Europe AG (former Volksbank International AG)
- Erich Hampel
- Anas Abuzaakouk: CEO for BAWAG Group AG and Chairman-Management Board & CEO for BAWAG P.S.K. AG (a subsidiary of BAWAG Group AG). He is also on the board of easybank AG.
Neobank in Austria
The neobank industry in Austria is an emerging sector in the country's financial landscape, as digital banking services continue to gain traction among consumers seeking convenience, simplicity, and innovation. Neobanks are digital-first banks that offer a range of financial services, such as personal accounts, loans, and payment services, primarily through mobile and web applications, with little or no reliance on physical branches.
Key Players in the Austrian Neobank Industry:
- N26: A prominent German neobank, N26 has expanded its operations to Austria[4]
- Bank99: A subsidiary of the Austrian Post, Bank99 is a digital bank targeting both consumers and businesses, offering services such as current accounts, loans, and investment products. Bank99 combines the digital-first approach of neobanks with access to physical branches in post offices across Austria.
Stock exchange
A special decree of Empress Maria Theresa (August 1, 1771) provided for the establishment of a stock exchange in Vienna. From the mid-19th century to the beginning of World War I, it was the main capital market of middle and eastern Europe, and from 1918 to 1938, it had continuous international importance as an equity market for the newly founded nations originating from the former monarchy. The exchange also deals in five Austrian and seven foreign investment certificates. The Austrian Traded Index has grown steadily in the past few years, growing 8.71% in 2002, and averaging a growth rate of 10.15% in the past five years. Market capitalization as of December 2004 stood at $85.815 billion, with the index up 57.4% at 2,431.4 from the previous year. There were 99 companies listed on the Wiener Börse AG in 2004.
See also
References
- ^ "About us - Oesterreichische Nationalbank (OeNB)". www.oenb.at. Retrieved 2023-04-10.
- ^ "Financial Market Supervision". bmf.gv.at. Retrieved 2023-04-10.
- ^ "FMA".
- ^ "German online bank N26 to launch crypto trading in Austria". Yahoo Finance. Retrieved 2023-04-10.