Bloomberg News

Austrian Banks’ Domestic Foreign-Currency Loans Drop 9.5%

August 29, 2012

Austrian banks’ loans in foreign currencies, predominantly Swiss francs, to domestic retail clients declined to 35.6 billion euros ($44.6 billion) by the end of June, the FMA watchdog said today.

The outstanding volume fell 9.5 percent from a year earlier, if adjusted for the decline of the euro versus the franc in the same period, the Finanzmarktaufsicht bank regulator said in a statement today. It’s dropped 25.3 percent since the FMA first banned such loans in late 2008, it said.

The loans are mostly long-term mortgages, and 93.2 percent are denominated in francs, the FMA said. The remainder is almost entirely in Japanese yen. The volume cited excludes the foreign- currency loans Austrian banks have given in to clients in other countries such as Hungary, Romania and Poland.

To contact the editor responsible for this story: Zoe Schneeweiss at zschneeweiss@bloomberg.net


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