Prepared by Michael Andrews, MAE.
Interest payments are tax deductible, while dividends are paid from a company’s after-tax income, and are in turn subject to income tax in the hands of the investor (double taxation).
The comparable figures for Germany and Switzerland, two other highly-banked countries, are one branch for each 1,725 and 1,854 persons respectively.
More detailed and timely data on asset quality will be available for 2002 following the implementation of a quarterly reporting requirement.
See the Austrian National Bank’s Financial Marked Stability Report Number 1 (June 2001) and Number 2 (December 2001) and the 2000 Selected Issues chapter “Challenges of European Financial Integration: The Case of Austria.”
OeNB data for end-2001 indicates that foreign controlled subsidiaries and branches in Austria had a market share of 19.7 percent. Creditanstalt, a subsidiary of Bank Austria (controlled by Bayerische HypoVereinsbank of Germany), was still classified by the OeNB as a domestic bank at end-2001 pending final legal integration into the Bank Austria structure. Adding the 6 percent market share of Creditanstalt, which was reclassified by the OeNB as a foreign bank in 2002, results in a foreign bank market share of 25.7 percent at end-2001.