Austrian Companies Expect Increase in Lending Costs

Businessn.a. ♦ Published: September 27, 2012; 23:54 ♦ (Vindobona)

Due to Basel III, lending will become more expensive, many Austrian managers and entrepreneurs think.

Austrian Companies Expect Increase in Lending Costs / Picture: © Vindobona.org

According to a survey of KSV (Austrian Association of Creditors), 76% of the respondents anticipate a remarkable increase in lending costs. Above all, small and medium sized companies face more credit constraints.

The Austrian banking industry explains that the margins are one of the lowest in Europe. In future, banks need a bigger equity base and more liquidity reserves, Andreas…