1. Operating banks in 14 markets, we see continued expansion in central and eastern Europe (CEE), the region of highest growth in Europe. The particularly strong growth of the finance industry will be underpinned by EU enlargement. And it is RZB’s aim to grow significantly faster than the industry, in corporate and retail banking. Our Austrian home market is characterised by a high level of competition and consolidation. We gained market shares in the recent past and we want to prolong this trend.
2. The ever-rising regulatory costs will have the greatest impact. Banks have the burden of reporting and compiling financial, monetary and balance-of-payments statistics. The cost-benefit ratio of such statistics is disproportional and deteriorates with new regulations such as Basel II. The cost of the rules coming into force in 2007 will even exceed the expenditures for the introduction of the euro.