Profitability and Competition in the Austrian Banking Sector

Institutional and structural changes affecting the financial and banking sector in Europe and thus also in Austria provide the background for an analysis of the profitability and competitive situation faced by Austrian banks since the country's accession to the European Union. The analysis is based on data obtained from 747 banks and covering the years 1995 to 2002. The figures were taken from the balance sheet statistics for Austrian banks prepared by the Austrian National Bank. For the competitive situation, regional data were additionally used in line with the WIFO's regional typology.