However, Holzmann is concerned about the flight of investors from medium-sized to large banks. “Flight always creates instability,” said the head of the central bank. Nowadays, transfers can be made quickly and easily, which can put regional banks under pressure – keyword bankrun. “It’s a bit scary and requires appropriate answers,” said Holzmann, without becoming more specific.
RBI link ‘delicate’
Holzmann expressed reservations about the controversial ties between Raiffeisen Bank International (RBI) and Russia. “We are dealing with a very sensitive issue here,” he said. On the one hand, there are owner interests and, on the other hand, moral concerns about doing business with Russia. One solution is to negotiate very transparently on all points. Holzmann acknowledged that the RBI is a big topic everywhere. “Due to the special relationship (to Russia, note) it is a topic for discussion.”
interest rate at 4 percent
Holzmann, who is also involved in the interest rate policy decisions of the ECB, expects further rate hikes and assumes that interest rates will rise to plus or minus 4 percent. In the fight against inflation, the European Central Bank raised interest rates sharply again on Thursday. It was the sixth interest rate hike in a row since the interest rate turnaround in July 2022. The deposit rate, which sets the trend on the financial markets and which financial institutions receive from the central bank for parking excess funds, is now 3.00 percent, and the key interest rate rose to 3.50 percent .