Hypo Alpe Adria Bank

Heta Asset Resolution A.G. is a "bad bank" that was the residual asset of the original Hypo Alpe-Adria-Bank International A.G., which was dismantled in 2014. It was owned by the Government of Austria.

The bad bank contained the leasing subsidiary of former Hypo Alpe-Adria-Bank Group in Austria, Italy, Bulgaria, Serbia, Montenegro and North Macedonia[2] but not in Bosnia and Herzegovina, Croatia and Slovenia, which were transferred to the "good bank".[3]

In the past Hypo Alpe-Adria-Bank International was also active in Austria, Germany, Italy, Bulgaria, Hungary and Ukraine.[4] However, due to the European debt crisis, the group was split into HBI-Bundesholding AG (consisting of the subsidiary Hypo Alpe-Adria-Bank S.p.A.; Italy), the Balkan banks (Hypo Group Alpe Adria AG; now Addiko Bank) and a bad bank, Heta Asset Resolution AG (ex-Hypo Alpe-Adria-Bank International AG) in 2014. The

History

Birth and rise of cross-border banking

The bank was founded in 1896 as a Landes-und Hypothekenbank (state Hypothekenbank). In the 1990s it explosively expanded into the Alps-to-Adriatic region. In 2004 the company was renamed Hypo Alpe-Adria-Bank International A.G., as a holding company for the "Hypo Alpe-Adria-Bank" subsidiaries.[5]

In May 2007 BayernLB, the Bavaria-state-owned bank, bought 50% plus one share (controlling stake) of Hypo Alpe-Adria-Bank International for €1.63 billion.[6]

European debt crisis and the demerger of the group

On 14 December 2009, BayernLB, Kärntner Landesholding (Carinthia state holding) and Grazer Wechselseitige Versicherung sold their stakes in the bank to the Austrian government for €1 each.[7] The bank was nationalised by the Austrian government to avert a bank collapse.[8] It was expected that between €13 billion and €19 billion of outstanding loans will never be paid back; to avoid bankruptcy, the Austrian taxpayers will have to cover this loss.[9]

The headquarters, which accounts for around 500 employees, was located in Klagenfurt, Austria and was responsible for controlling the subsidiary banks in Austria, Italy and South-Eastern Europe as well as those markets from which the bank was withdrawing (wind-down markets).[10]

In 2013 the domestic branches of the bank in Austria were sold to Anadi Financial Holdings, and renamed to Austrian Anadi Bank.[11]

As of February 2014, the Hypo Alpe-Adria-Bank International situation was unsolved,[12] causing Chancellor Werner Faymann to warn that its failure would be comparable to the 1931 Creditanstalt event.[13]

Under Resolution

In March 2014, the Austrian government decided to split Hypo Alpe-Adria-Bank International into a Balkans banking unit (Hypo Group Alpe Adria A.G.; formerly: Hypo SEE Holding A.G.), an Italian business (HBI-Bundesholding A.G.) and a bad bank, Heta Asset Resolution. The Balkans unit was sold in December 2014 to Advent International (80%) and the European Bank for Reconstruction and Development (20%).[14]

The original company Hypo Alpe-Adria-Bank International was renamed as Heta Asset Resolution, becoming a "bad bank" that did not have a banking license. It was intended to wind down the bad bank over a period of years.[15] The European Union had forbidden member states to provide state aid to make the market less competitive, thus the 2013 plan was redesigned in order to comply with EU law.[16] The General Court also ruled that the guarantee granted by Austria to BayernLB in 2009 during the nationalization was a state aid but nevertheless compatible with EU law.[17]

type	state-owned enterprise
industry	Financial services
founded	1896 2014 (spin off)
former name	Hypo Alpe-Adria-Bank International
successor	Addiko Bank (Balkan branches) Austrian Anadi Bank (Austrian branches)
hq location	1 Alpen-Adria-Platz
hq location city	Klagenfurt
hq location country	Austria
services	former bank under resolution
net income	€6.714 billion
net income year	2016
assets	€10.788 billion
assets year	2016
equity	€997 million
equity year	2016
owner	Austria (100%)
subsid	Alpe Adria Privatbank (in liquidation)
website	heta-asset-resolution.com
footnotes	in a consolidated financial statement‡R1R‡

Hypo Alpe Adria Bank

History

Birth and rise of cross-border banking

European debt crisis and the demerger of the group

Under Resolution

Buildings and sponsorship

See also

External links

References