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.