Bank manager reveals

Why the rise in bankruptcies is no cause for concern

Domestic companies are challenged.(Bild: Markus Wenzel)

The environment for small and medium-sized companies has become more difficult, the number of company bankruptcies is rising - yet bank managers see no cause for crisis. Why is that the case? Manuel Molnar, CEO of Sparkasse Oberösterreich, explains.

The number of insolvencies is expected to rise to more than 3,300 in the first half of the year, which corresponds to an average of 18 company bankruptcies per day - this projection was presented by Kreditschutzverband 1870 a few days ago. Figures that sound wild, but are less alarming for Manuel Molnar.

Optimism among small and medium-sized companies is declining, while the challenges are growing.(Bild: Krone KREATIV/Stock Adobe)

"Compared to 2019, the figures are at a normal level," says the CEO of Sparkasse Oberösterreich, who yesterday presented a study conducted for Erste Bank und Sparkasse.

The focus: small and medium-sized businesses in Upper Austria, of which the Linz-based financial institution has around 21,000 customers.

The economic environment has become challenging, but the companies are well positioned, also in terms of equity.

Manuel Molnar, Vorstandsdirektor der Sparkasse OÖ

Bild: Sparkasse OÖ/Team FotoKerschi

The environment has become challenging: "The labour shortage has come to stay, interest rates have come to stay and digitalization will continue to intensify," says Molnar.

"When things get tough, they can adapt"
Why does the motto "fear not" still reign? "The Austrian economy has done its homework well. Our corporate customers are well capitalized and therefore have a risk-bearing capacity. Even when things get tough, they can adapt. They are innovative and find new markets."