Austrians add 200m euros to Volksbank's capital

The Austrian shareholders of Volksbank, a top ten player
domestically, decided to add 200m euros to the bank’s share capital
and replace the current management team led by president Gerald
Schreiner. Schreiner had announced as early as last December the
bank would increase its capital by 200m euros by converting some
financing lines into capital, with February 2010 as the deadline he
specified. The name of the new president has not been disclosed so
far and he is awaiting NBR’s go-ahead to take over the position.
“After the years of intensive economic growth, Volksbank group is
starting a new chapter, is coming with a new contribution to
capital and is focusing on cementing its current top position. The
experiences of local management will be used more intensely and
this is why a personnel change within Volksbank International
network was enacted,” specified the bank’s officials. Volksbank
ranks third in terms of assets, with a 6.6% market share, meaning
5.2bn-euro assets. In just five years, the bank has climbed from
the middle of the ranking to the 3rd position in the banking
system, relying almost exclusively on mortgage lending for
growth.