Wiener Bankverein
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Wiener Bankverein

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Wiener Bankverein

The Wiener Bankverein or Bank-Verein (WBV, lit.'Viennese Bank Union') was a major bank in the Habsburg Monarchy and the First Austrian Republic, founded in 1869. In 1888 it was the fourth-largest bank of Austria-Hungary by market capitalization, behind the Austro-Hungarian Bank, the Länderbank, and the Creditanstalt. It merged with the troubled Creditanstalt in 1934 to form Creditanstalt-Bankverein. Wiener Bankverein is thus one of the many predecessor entities of UniCredit, as the latter in 2005 acquired Bank Austria which itself had merged with Creditanstalt in 1997.

The Wiener Bankverein's creation was sponsored in 1869 by the Allgemeine Bodencreditanstalt, which had been established in Vienna in 1863. In 1871, with assistance from Anglo-Austrian Bank and Darmstädter Bank, it sponsored the creation of a joint-stock bank in Constantinople, the Austro-Ottomanische Bank; but that venture soon faltered and was acquired by the Imperial Ottoman Bank in 1874. It the late 19th century, the WBV became active in financing ventures in southeastern Europe including railways in the Balkans and petroleum production in Romania. In 1890, it founded the Hungarian Industrial and Commercial Bank in Budapest, with privileged tax status granted by ad hoc legislation. In 1895, it led the creation of the Landesbank für Bosnien und Herzegowina in Sarajevo. In 1906, it returned to Constantinople and opened a branch office there, soon followed by the construction of a prominent branch building inaugurated in 1912. It opened a branch in Zagreb in 1908. By 1912, it had the largest network of all Austrian joint-stock banks, with 49 branches in comparison to 31 for the Länderbank and 21 for the Creditanstalt.

On 25 July 1914, the prospect of impending war triggered a bank run at the Wiener Bankverein's branch in Constantinople, which was subsequently closed on 1 August 1914. It opened a branch in Belgrade under Austro-Hungarian occupation in 1916 during World War I.

Following the war's end and post-war financial turmoil in the newly formed First Austrian Republic, the Société Générale de Belgique (SGB) and its affiliate the Banque Belge pour l'Étranger (BBE) recapitalized Wiener Bankverein in 1920, joined in 1922 by Basler Handelsbank and in 1927 by Dillon, Read & Co..

Following the banking crisis of 1931, the Bankverein experienced financial distressed. In 1932, it transferred a significant portfolio of problem assets to a government-owned vehicle, the Gesellschaft für Revision und Treuhandige Verwaltung and issued new shares to restore its capital base, but that transaction and a similar one in 1933 proved insufficient. Eventually, the Wiener Bankverein was merged on 31 December 1933 into the recapitalized Creditanstalt, which simultaneously took over the viable operations of Niederösterreichische Escompte-Gesellschaft. The resulting merged entity adopted the name Österreichische Creditanstalt - Wiener Bankverein, in short Creditanstalt-Bankverein.

As part of their restructuring of the WBV, the Société Générale de Belgique and Banque Belge pour l'Étranger created new domestic banks in the Empire's successor states, in which they initially had joint controlling ownership together with their partner the Basler Handelsbank:

The AJB gained prominence in Yugoslavia during the 1930s, when it was the largest bank to avoid falling under a "moratorium" on its liabilities following the European banking crisis of 1931. In 1940 following the German invasion of Belgium, Deutsche Bank bought out the Belgian stake under duress and became its dominant shareholder, with 88 percent held either directly or through Creditanstalt, also under Deutsche Bank's control since Anschluss in 1938; businessman Franz Neuhausen became its Chairman. Deutsche Bank simultaneously took control of the Landesbank in Sarajevo. Following the German invasion of Yugoslavia, the AJB was divided into two separate institutions:

Both banks' assets were confiscated by the newly established Communist authorities in October 1944, and they were subsequently liquidated.

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