According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Austria is scored 4.6 out of maximum 7.0 and ranked 30th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 4.6 (48th place).
Chart 1. Financial Market Development in Austria. Source: WEF.
Soundness of banks is scored 5.2 bringing Austria into the 57th place.
Chart 2. Soundness of Banks in Austria. Source: WEF.
Banks in Austria are mainly focused on the following areas:
Currently there are 540 credit institutions operating in Austria.
In 2018 consolidated banking assets in Austria were 985.98 bln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in Austria.
Recent structural changes (2013 - 2018) of the banking sector of Austria are summarised in Table 1.
|Number of Opened Banks||1||1||1||1||1||1|
|Number of Closed Banks||13||24||29||66||43||25|
Table 1. Recent structural changes in the banking sector of Austria.
The list of the most recently opened banks in Austria is provided in Table 2.
|VTB Bank (Europe) SE, Zweigniederlassung Wien||May 2018|
|BNP PARIBAS PERSONAL FINANCE SA Niederlassung Österreich||January 2017|
|Bank of China (Hungary) Close Ltd. Vienna Branch||January 2016|
|Mizuho Bank Europe NV Vienna Branch||July 2015|
|FIL Fondsbank GmbH Zweigniederlassung Wien||October 2014|
|Addiko Bank AG||June 2013|
Table 2. The most recently opened banks in Austria.
All the credit institutions operating in Austria can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Building and loan associations||4|
|Institutions defined under § 9 BWG||25|
|Joint stock banks and private banks||35|
|Raiffeisen credit cooperatives||386|
|Special purpose banks||18|
|State mortgage banks||8|
|Volksbank credit cooperatives||12|
There are 26 branches of foreign banks from 8 different countries in Austria. Table 4 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|
Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Austria are summarised in Table 5.
Table 5. Deposit guarantee scheme in Austria.
EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.
EEA currencies are all official currencies of EEA members. Switzerland is not a EEA member, but because CHF is the official currency of Liechtenstein, CHF also belongs to EEA currencies.
So, only the deposits made with Austrian banks in the following currencies are covered by the deposit guarantee scheme of Austria
|RON||Romanian new leu|
It should be also noted that deposits in non-EEA currencies (for example, USD and JPY) are not covered by the Austrian deposit guarantee scheme.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Euro) deposit ceiling for Austria is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
Chart 4. Deposit Rates in Austria. Source: ECB.