AUSTRIA: BANKS LOSING MONEY ON GIRO ACCOUNTS

Article Abstract:

According to a study conducted by McKinsey on behalf of the Wirtschaftskammer, Austrian banks made losses of Sch 3.36bn on giro accounts in 1998. In 1989 the loss totalled Sch 4.89bn. Calculated per account, the deficit fell from Sch 985 to Sch 557. A private client pays Sch 527 per year on average for a giro account. The increase of fees by Sch 159 since 1994 is explained with investments in new technology. Austrian banks cover merely 72% of the costs of giro accounts, while in Germany the rate is 97%. In Italy, banks generate revenues of Sch 21bn with giro accounts. In order to reduce the losses from giro accounts further, Austrian banks will try to persuade private clients to use less cost-intensive forms of service such as telephone and internet banking, card payment and direct debit. Cash transactions at bank counters account for 32% of all transactions and cause 77% of transaction costs.

Sales, profits & dividends, Financial Services, Finance and Insurance

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AUSTRIA: FULL DEPOSIT GUARANTEE BY RAIFFEISEN

Article Abstract:

The Raiffeisen bank of Upper Austria, Raiffeisen-Landesbank Oberosterreich, has set up a deposit guarantee fund of its own and is introducing a guarantee of 100% of customer deposits. Due to legal considerations the guarantee is officially for "up to 100%". The fund that is financed from reserves and equity covers also anonymous accounts. This is described as a novelty in Austria. The country's deposit guarantee law requires a guarantee of Sch 275,000.

General services, Savings & Loan Assns, Savings Institutions, Savings and loan associations, Raiffeisen Bank

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Austria: Five accounts of suspected terrorists frozen

Article Abstract:

Radio stations in Vienna have reported that five bank accounts belonging to suspected terrorists have been frozen. At least one of the accounts belongs to charity TWRA which allegedly helped to finance weapons for Bosnians during the Balkan war, and it is suspected that the charity may also have links to Osama Bin Laden. The public prosecutor is yet to make an announcement on the freezing of the accounts.

Public affairs, TWRA

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