Austrian regulators ease lending of local banks to Bulgarian subsidiaries.

By bne IntelliNews March 15, 2012
The Austrian Financial Market Authority and the Austrian central bank have lifted the restrictions imposed on Austrian banks operating in Central, Eastern and Southeast Europe (CESEE) regarding lending to local subsidiaries, Capital Daily informs. In November, the two regulators asked Austrian banks to adhere to the set of measures to improve the sustainability of the business models of the Austrian banks operating in CESEE. Austrian banks' subsidiaries in CESEE were asked to link credit expansion to the growth of sustainable local refinancing (comprising mainly local deposits, but also local issuance activity and supranational funding, e.g. by the EBRD or the EIB) and to ensure that the ratio of new loans to local refinancing does not exceed 110%. Now the two regulators will only monitor and analyse quarterly data. The measures referred to Austria's Erste Group, Raiffeisen Bank International and Bank Austria, owned by Italy's UniCredit, which controls the country's largest UniCredit Bulbank and the fourth largest Raiffeisenbank Bulgaria.

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