- Austrian regional banking group, the Association of Volksbanks, is undertaking a restructuring after failing European Central Bank (ECB) stress tests in 2014, which found the group had a capital shortfall of €856 million.
- More than 40% nationalised having received around €1.35 billion in state bail-outs, the bank began the restructuring after the government refused to commit any more public funds to the group.
- The restructuring, which is using legislation implemented in 2014 - Austrian Bank Intervention and Restructuring Act (BaSAG) - involved spinning off Österreichische Volksbanken (Övag), the central organisation in the Association of Volksbanks and transferring its responsibilities Volksbank Wien Baden.
- OVAG has been converted into a bad bank, operating as Immigon portfolioabbau, which will - under terms of the deal agreed with the EU - run down a portfolio of around €7 billion) by the end of 2017.
- In August 2015, Austrian lender Bawag PSK acquired VB Leasing - Volksbank's former from lease finance arm - from Immigon portfolioabbau for an undisclosed fee.
Ben Naylor - Regional editor