Bank für Arbeit und Wirtschaft AG, BAWAG#
Bank fuer Arbeit und Wirtschaft AG, BAWAG, principal shareholders are the Austrian Federation of Trade Unions and Bayerische Landesbank, which took over the shares of Konsum Oesterreich after the latter's bankruptcy in 1995. With a balance sheet total of 267 thousand million ATS (figures from 1998), 2,500 staff and 154 branch offices, the bank figures among Austria´s biggest universal banks.
When the bank was founded in 1922 by K. Renner as "Arbeiterbank", its
purpose was to combine and administer the finances of trade unions and
consumer cooperatives. Even though business developed favourably
during the world-wide economic crisis, the bank was wound up for
political reasons in 1934.
In 1947 the bank was newly founded and then slowly started developing
spheres of business other than its original one. The bank´s name
was changed to "Bank fuer Arbeit und Wirtschaft" (i.e. "Bank for
Labour and Business") in 1963 to demonstrate publicly the
re-orientation of its business policy. However, the bank continued to
concentrate its business on providing extensive financial services for
persons in dependent employment. Specialised products were developed
for this target group, such as the Barzustellungskredit (BZK), a type
of loan which is administered by the works council. In the savings
sector, the Kapitalsparbuch (capital passbook) was a great success. Up
to the year 1979, BAWAG was restricted in its expansion by a banking
law which required a licence to be obtained for every single branch
office that was opened. BAWAG therefore had only 26 branch offices in
1977. Since the law was amended in 1979, the bank has opened over 120
new offices and started a new offensive in commercial and
international business. Due to its sound primary money base, the bank
has been able to significantly expand its credit business with private
business. Innovative products and services are also offered in the
securities and electronic banking sectors. Partnership with the
Bayerische Landesbank has contributed to the BAWAG's intensifying its
international business with the Central and Eastern European countries
on Austrian borders as well as with Hongkong.