Press Release: Free movement of capital: Commission closes case against Austria concerning liquidity reserve obligations in certain banking sectors

The European Commission closed the infringement procedure initiated against Austria on legislation requiring banks in the cooperative and savings banks sector to keep a liquidity reserve exclusively with their central institution in Austria. Following an amendment made to the Austrian legislation in question, these banks are offered the possibility to keep the liquidity reserve with another bank in the EU if they join a scheme of joint liquidity compensation and keep that reserve to provide liquidity in case of need.