10. Nov. 2005
Ever-new supervisory rules lie ahead for banks. Experts thoroughly debated their use, reasonableness and costs in the course of this convention, highlighting dangers to the development of a proper social market economy.
Arnulf Perkounigg, director of the Raiffeisen Association Tyrol fittingly addressed the very heart of the matter: "Around the world there is an unholy alliance of bureaucrats". Perkounigg, who presided over the convention as host of the event at the Raiffeisen Hall in Innsbruck, continued that the costs of overregulation in Austria amounted to a whopping 220 Mio. Euros, which equalled 2,7% of all operating costs. On the one hand it was understandable that tighter control over financial streams would be exerted in the light of increased international terrorism, while on the other the independence of regional banks was threatened, Perkounigg argued. Manfred Url, Chairman of the Board, Raiffeisen Centralbank Austria asked for greater faith in the self-regulatory capacity of the financial trade. Url stated, "The limits of regulation must be defined and respected"
New financial reporting system IAS divides Europe
The switch of accounting to the IAS-system (International Accounting Standards) puts further cost pressure on cooperative banks as well as small and medium sized enterprises. These standards set up rules for international accounting and external company reporting, which only make sense to a target group of "investors" who offer their funds on the capital market. Any considerations to burden non-capital market oriented enterprises as well miss their mark. "These regulation standards overwhelm the middle-class", Bernd Spohn, Chairman of the Austrian Cooperative Association emphasised. The EU has envisaged a transitional period until early 2007 for two groups of public companies. The new regulation standard will be introduced already next year in Italy and the Baltic states as binding for all financial service companies.
Encouraging lobbying for cooperative banks
At the closing panel discussion, Paul Gasser, Vice-Chairman, Raiffeisen Association, called for increased lobbying on a European level to explain to decision makers specific peculiarities of small regional banks.
IGA awards the first sponsorship prize
At the end of the convention, management consultant Sebastian Told received from IGA the first sponsorship award in the amount of 3.500 Euros. In his thesis submitted at the University of Innsbruck, Told skilfully studies cooperative banks in connection with the processes and organisation during mergers. Told had produced a highly readable and occasionally entertaining work, Professor Dr. Rudolf Steckel stated in his award speech. Told expressed his gratitude to the IGA executive board most cordially.