A further major milestone in the restructuring of the Association of Volksbanks was agreed at a conference of the Volksbanks held on 7 November: The Volksbanks approved concrete steps that will see them merge to form eight large regional banks (the previous plan envisaged nine). This plan have been agreed from nearly 92% of the Volksbanks. The mergers are to take place gradually, with final completion - including from a technical point of view - scheduled for 2017 at the latest. The mergers require formal approval at the annual general meetings of the individual Volksbanks, which are due to be held within the next weeks.

VBAG CEO Dr Stephan Koren said: "With the resolution passed today, the Association of Volksbanks is making a major contribution to the consolidation of the banking landscape in Austria, laying the foundations for better cost structures, a stronger presence on the market and greater earning power."

Heribert Donnerbauer, Chairman of the Austrian Association of Cooperatives (ÖGV): "Today's decision gives the Association of Volksbanks a highly efficient setup. Despite larger structures, we will retain the same focus on the regions. The Volksbanks' branch network will continue to serve small and medium-sized businesses as a local supplier of financial services and a reliable partner."

Merging the Volksbanks to form large regional banks is part of the Association of Volksbanks' restructuring plan, which is contingent on approval by the authorities and under supervisory law.

Forming the Volksbank Vienna regional bank (based in Vienna):
Volksbank Wien-Baden AG (receiving bank)
Gärtnerbank (already merged into Volksbank Wien-Baden AG)
Volksbank Niederösterreich Süd eG
Volksbank Ost registrierte Genossenschaft mit beschränkter Haftung
Volksbank Weinviertel e.Gen.
Volksbank Marchfeld e.Gen.
Volksbank Obersdorf - Wolkersdorf - Deutsch-Wagram e.Gen.
Volksbank Südburgenland eG

Forming the Volksbank Lower Austria West regional bank (based in St. Pölten):
Volksbank Niederösterreich St. Pölten-Krems-Zwettl Aktiengesellschaft (receiving bank)
Volksbank Fels am Wagram e.Gen.
Volksbank Alpenvorland e.Gen.
Volksbank Donau-Weinland registrierte Genossenschaft mit beschränkter Haftung
Volksbank Ötscherland eG
Volksbank Tullnerfeld eG
Waldviertler Volksbank Horn registrierte Genossenschaft mit beschränkter Haftung
Volksbank Enns - St. Valentin eG
VOLKSBANK OBERES WALDVIERTEL registrierte Genossenschaft mit beschränkter Haftung

Forming the Volksbank Upper Austria regional bank (based in Wels):
Volksbank Linz-Wels-Mühlviertel AG (receiving bank)
VOLKSBANK VÖCKLABRUCK-GMUNDEN e.Gen.
Volksbank Schärding-Altheim-Braunau eG
Volksbank Eferding - Grieskirchen registrierte Genossenschaft mit beschränkter Haftung
Volksbank Ried im Innkreis eG
Volksbank Bad Hall e.Gen.
Volksbank Almtal e.Gen.

Forming the Volksbank Salzburg regional bank (based in the city of Salzburg):
Volksbank Salzburg eG (receiving bank)
Volksbank Bad Goisern eingetragene Genossenschaft
Volksbank Steirisches Salzkammergut registrierte Genossenschaft mit beschränkter Haftung
Volksbank Oberndorf registrierte Genossenschaft mit beschränkter Haftung
Volksbank Strasswalchen-Vöcklamarkt-Mondsee eG

Forming the Volksbank Tyrol regional bank (based in Innsbruck):
Volksbank Tirol Innsbruck-Schwaz AG (receiving bank)
Volksbank Kufstein-Kitzbühel eG
 VOLKSBANK LANDECK eG

Volksbank Vorarlberg e. Gen. regional bank (based in Rankweil):
No changes - Volksbank Vorarlberg already exists

Forming the Volksbank Carinthia regional bank (based in Klagenfurt):
Volksbank Gewerbe- und Handelsbank Kärnten eGen (receiving bank)
Volksbank Feldkirchen eG
Volksbank Kärnten Süd e.Gen.
VOLKSBANK OBERKÄRNTEN registrierte Genossenschaft mit beschränkter Haftung
Volksbank Gmünd eingetragene Genossenschaft
Volksbank Osttirol-Westkärnten eG

Forming the Volksbank Styria regional bank (based in Graz):
Volksbank Steiermark Mitte AG (receiving bank)
Volksbank Obersteiermark e.Gen.
Volksbank Süd-Oststeiermark e.Gen.

The regional Volksbanks are to be complemented by three specialist institutions in future.

For further information contact:
Petra Roth
Österreichische Volksbanken-AG
Mobile phone: +43 (0)664 6129223
Mail to: petra.roth@volksbank.com

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