Features of banks of Austria in Central, Eastern and Southeastern Europe

Abstract

The features of structure of the banking system in Austria and of banking institutions in Central, Eastern and Southeastern Europe (CESEE) are considered in the article. Austrian financial services sector is successfully developing in the territory of neighboring countries in transition, but it is exposed to significant risks of a chain reaction, which in turn can lead to additional contingent liabilities for the budget. The purpose of this research is to make the analysis of banking institutions in Austria and to work out the practical recommendations to ensure their efficient operation in CESEE in the context of international banking business. In this study we have used a systematic approach to study features of the banking system in Austria, method of structural analysis of the process of expansion of Austrian banks considering global experience of integration processes. Results of the study provide the formation of conclusions about the causes of interest of Austrian banks to the countries of CESEE; the level of riskiness of this activity and methods of its minimization in the context of financial stability of banking systems of  Austria and countries of CESEE.