Engine for the economy

A cash crash at Landesbank with blue and yellow DNA

Christian Helmenstein, Head of Economica Institute for Economic Research, with Provincial Councillor Schleritzko and Hypo-NÖ Board Member Wolfgang Viehauser (from left)(Bild: HYPO NÖ/Bollwein)

Four billion euros in liquidity for companies, municipalities and private individuals: how Hypo NÖ supports social development as a regional economic engine with loans.

From educational institutions to private homes - Hypo NÖ is an economic driver for the region, securing jobs and generating added value and dividends. However, the Landesbank also plays a significant role in the development of the local economy through its lending activities. However, CEO Wolfgang Viehauser can also back up these claims with figures: an analysis by the economic research institute Economica shows that more than three billion euros in added value was created throughout Austria by these loans alone.

 "One euro of direct value added triggers 95 cents of indirect and induced value added," it says. And these loans also mobilize: in addition to around 200 million euros for infrastructure and trade, around 580 million euros were made available for residential construction projects.

(Bild: Krone KREATIV/Stock Adobe)

"The results also show that Hypo's most important area of financing in this country is private and non-profit housing construction," says Ludwig Schleritzko, Member of the Provincial Council for Finance. And not only in the urban centers. It is particularly pleasing "how much Hypo fulfills its regional mandate: loans in the public sector - for example to cities and municipalities - are not only granted in regions with a strong population and economy," explains Christian Helmenstein. In regional terms, the highest economic effects in terms of gross value added are triggered in Lower Austria with just under 1.4 billion euros (alongside Vienna).

Loan financing with added value for society
The Landesbank provides a lot of liquidity per capita, especially in economically less powerful regions. It is also worth noting that young people and women receive an above-average volume of financing from Hypo, Helmenstein continues. It is therefore a not insignificant factor for lower-income private individuals when it comes to creating their own homes and private assets.

The relevance study also makes it possible "to show the specific wishes, goals and dreams of the people behind the loans", says Viehauser, pleased with Hypo's "blue and yellow DNA".