The Oesterreichische Nationalbank (OeNB, lit.'Austrian National Bank') is the Austrian member of the Eurosystem and was the monetary authority for Austria from 1923 to 1938 and from 1945 to 1998, issuing the Austrian schilling.
1 The Oesterreichische Nationalbank still exists but many functions have been taken over by the ECB.
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It started operations on 1 January 1923 under the economic assistance provided to Austria by the Economic and Financial Organization of the League of Nations, replacing the Austro-Hungarian Bank with its name recalling that of the Austro-Hungarian Bank's predecessor entity founded in 1816. It was liquidated following the Anschluss in March 1938, and re-established in July 1945.
The OeNB is a joint-stock corporation governed by special legislative provision. Its entire capital of €12million has been held by the Austrian federal government since May 2010, with shareholder rights exercised by the Minister of Finance.[2] Before 2010, half of the capital was in the hands of employer and employee organizations as well as banks and insurance corporations.[citation needed]
History
A quarter of a founder's share of the Oesterreichische Nationalbank, issued 22. December 1922
The Oesterreichische Nationalbank was established under the conditions of the stabilization loan coordinated by the Economic and Financial Organization of the League of Nations in 1922–23.[3] The bank's statutes were drafted by the League's Financial Committee and enacted in Austrian legislation on 14 November 1922. The new institution started operations on 1 January 1923.[4] It took over the former Austrian-territory branches and operations of the Austro-Hungarian Bank, whose liquidation had been implemented in accordance with the Treaty of Saint-Germain-en-Laye signed on 10 September 1919, and whose Governing Council last met on 15 December 1922.[5]
Following the banking crisis of 1931, Austrian National Bank President Viktor Kienböck oversaw an orthodox economic policy paradigm in which he rigorously defended the currency in the face of growing overvaluation. This contributed to a substantial contraction in Austrian GDP.[6]
Following the Anschluss in 1938, the Austrian National Bank's was liquidated, and its shareholders were forced to accept German government bonds in exchange for their shares.[7]:70 Its operations were taken over by the Reichsbank and became the latter's Vienna branch, and the Reichsmark became Austria's currency by German decree of 17 March 1938. The former National Bank's gold holdings and foreign currency reserves were moved to Berlin.[8]
The Oesterreichische Nationalbank was re-established by the Central Bank Transition Act of 3 July 1945 of the Second Austrian Republic. The Austrian schilling came back to replace the Reichsmark on 21 December 1945. Much of the head office building served as headquarters of the American occupation forces in Austria from 1945 to 1951.[9]
Tasks and composition
The main tasks of the OeNB center on contributing to a stability-oriented monetary policy within the Eurozone, safeguarding financial stability in Austria and supplying the general public and the business community in Austria with high-quality, i.e. counterfeit-proof, cash. In addition, the OeNB manages reserve assets, i.e. gold and foreign exchange holdings, with a view to backing the euro in times of crisis, draws up economic analyses, compiles statistical data, is active in international organizations and is responsible for payment systems oversight. Furthermore, the OeNB operates a payment system for the euro, promotes knowledge and understanding among the general public and decision makers owing to its comprehensive communication policy, and supports research in Austria.
