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EU May Probe Austria’s New East Europe Bank Rules, Standard Says

The European Commission is investigating whether new Austrian rules for the country’s banks’ eastern European units are violating European Union rules, Austrian newspaper Der Standard reported.

The Commission, the EU’s executive body, was alerted by several eastern European finance ministers, which fear the rules may crimp growth in their countries, the Vienna-based newspaper reported, without saying where it got the information.

The rules, which demand that Austria’s top three banks fund their lending in eastern Europe mostly via deposits, may be inconsistent with the EU’s rules on the free movement of capital, Der Standard said.

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