Banking in Austria
Encyclopedia
The Austrian National Bank (Österreichische Nationalbank), originally opened on January 2, 1923 but taken over by the German Reichsbank in 1938, was reestablished on July 3, 1945. The bank is a corporation with capital shares fixed by law at $150 million; 50% of the shares are, by law, owned by the 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.
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.
On January 12, 1997, the coalition partners, after long and intensive negotiations, agreed to sell Credit and staff-Bankverein to the indirectly state-owned Bank Austria, which is dominated by the senior coalition party, the 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.
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.
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 Borse
AG in 2004.
Banking system
The Austrian banking system also includes joint-stock banks, banking houses, and private bankPrivate bank
Private banks are banks that are not incorporated. A private bank is owned by either an individual or a general partner with limited partner...
s, as well as postal savings banks, private savings banks, mortgage bank
Mortgage bank
A Mortgage bank specializes in originating and/or servicing mortgage loans.A mortgage bank is a state-licensed banking entity that makes mortgage loans directly to consumers...
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.
On January 12, 1997, the coalition partners, after long and intensive negotiations, agreed to sell Credit and staff-Bankverein to the indirectly state-owned Bank Austria, which is dominated by the senior coalition party, the Social Democratic Party
Social Democratic Party of Austria
The Social Democratic Party of Austria is one of the oldest political parties in Austria. The SPÖ is one of the two major parties in Austria, and has ties to trade unions and the Austrian Chamber of Labour. The SPÖ is among the few mainstream European social-democratic parties that have preserved...
(SPO). The sale created a financial and industrial giant in Austria, which holds about one-quarter of the assets of all financial institutions.
The International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
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.
Stock exchange
A special decree of Empress Maria Theresa (August 1, 1771) provided for the establishment of a stock exchangeStock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
in Vienna. From the mid-19th century to the beginning of World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
, 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
Austrian Traded Index
The Austrian Traded Index is the most important stock market index of the Wiener Börse and the largest trading place in the Austrian economy...
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 Borse
Wiener Börse
The Wiener Börse AG is the only stock exchange in Vienna, Austria, and one of the most established exchanges in Eastern- and Southeastern Europe.-History:...
AG in 2004.