Banking and Finance

• The Financial Sector

At the apex of the system is the Austrian National Bank, which is responsible for the internal and external security of the Austrian currency as well as for the regulation of domestic currency circulation and external clearing arrangements in accordance to the European Central bank. It is the only body in Austria authorised to issue banknote.
 
The Austrian National Bank has the legal form of an AG. Half of its shares are held by the federal government, and the remainder are held by representatives of both labour and management as well as banks, insurance companies and mutual societies.
 
The Austrian currency is one of the most stable in the world. Austrias currency is the Austrian Schilling (ATS) until the 31 of December 2001, after this date the Austrian Schilling is changed in the Euro at the rate of 13,7603 ATS for 1 Euro.
 

• Commercial Banks

The most important Austria based banks are:

Bank

Bank Austria Creditanstalt

Österreichische Kontrollbank

BAWAG - Bank für Arbeit und Wirtschaft

Österreichische Postsparkasse

Raiffeisen Bankengruppe

Erste Bank der österreichischen Sparkassen

Österreichische Volksbanken

 
The principal activity of the major banks lies in the financing of larger industrial projects and servicing their major clients in trade and industry. Heavy emphasis is also placed on international business and its financing.
 
Also of importance are the savings banks, which primarily accept savings deposits and grant loans and credits to industry, trade and commerce as well as provide financing for housing construction and various other purposes.
 

• Bank Secrecy

Austria has some of the most stringent bank secrecy legislation anywhere in the world, with the Austrian Banking Act providing the legal basis. The terms of this ensure that any secrets obtained solely as the result of the business relationship with a client may neither be revealed nor exploited, and this obligation is not limited in time.
 
Banking secrecy as such has constitutional rank, meaning that any change in its legal basis would require a two-thirds majority in the Austrian Parliament.
 
In order to prevent money laundering, the Austrian National Bank has since 4 November 1991 required the disclosure of the names of non-residents who make transfers to the account of their trustee within the country. In addition, the trustee must provide the name and address of his client and present a power-of-attorney as evidence of his being authorised to represent him.