Co-operative Banking in Austria

Federica Poli ()
Additional contact information
Federica Poli: Università Cattolica del Sacro Cuore

Chapter Chapter 3 in Co-operative Banking Networks in Europe, 2019, pp 97-145 from Palgrave Macmillan

Abstract: Abstract Co-operative banking developed rapidly in Austria during the second half of the nineteenth century, following the ideas and principles of Schulze-Delitzsch and Raiffeisen. Today, the prevailing “alternative nature” of Austria’s highly competitive banking sector is demonstrated by the market dominance of two co-operative networks, Raiffeisen banks and to a lesser extent Volksbanks, which together provide almost 82% of the country’s total banks. Overall, in the period 2008–2017 the co-operative model shows significant differences in terms of higher capital and liquidity and lower investment space allocated to securities. It turns out to be slightly less involved in lending to customers when compared with the peer non-co-operative groups. However, if we turn to the credit risk exposure of the co-operative sector and the profitability results obtained from it, we find that the combination of risks and returns for the various bank models is rather similar over time. Additionally, co-operative banks (CBs) maintain a degree of operational inefficiency that is significantly higher than that of their peers among the joint-stock and savings banks.

Keywords: Volksbanks; Popular banks; Raiffeisen banks; CESEE; Volksbanks Verbund; Inverted ownership structure; Strategic network; Institutional protection scheme (IPS); Quasi-strategic network; Market share; Governance ratio; Performance; Capital; Risk; Profitability; Efficiency (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-030-21699-3_3

Ordering information: This item can be ordered from
http://www.palgrave.com/9783030216993

DOI: 10.1007/978-3-030-21699-3_3

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().