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One third of Austrian banking sector jobs under threat: central bank

Xinhua, December 19, 2015 Adjust font size:

One third of jobs in the Austrian banking sector could be lost in the next four to five years, governor of the National Bank of Austria (OeNB) Ewald Nowotny said Friday.

A scenario where 25,000 of the 75,000 jobs that currently exist in the domestic banking sector could disappear is "not unrealistic," Nowotny said at a presentation for the central bank's Financial Stability Report.

Banks currently face numerous challenges, such as weak economic growth, low credit quality, and "ultra-low" interest rates, he said.

Structural change is, however, "necessary and underway" and will make the banking system more resilient and monetary policy more effective, he added.

The OeNB said it will be closely monitoring reform efforts, "to ensure they do not give rise to new financial stability risks."

However, it was noted that overall, Austrian banks have already increased their resilience over the past few years, and while they also improved their profitability in the first half of 2015, the OeNB said it remains to be seen whether this will be sustainable. Endit