Austria: Publication of Financial Sector Assessment Program Documentation—Technical Note on Crisis Preparedness and Management Framework
IMF Staff Country Reports, January 21, 2014
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- Austria: Publication of Financial Sector Assessment Program Documentation—Technical Note on Crisis Preparedness and Management Framework
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Bibliographic details
- Published: January 21, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484376348.002
Summary
- This Technical Note analyzes crisis preparedness and management framework in Austria.
- The global crisis revealed weaknesses in Austria’s financial stability policy framework.
- Austria needs to put in place a special bank resolution regime to resolve problem banks in a manner that does not endanger financial stability or fiscal sustainability.
- Although the authorities prefer to await the formal adoption of the European Union (EU) Directive on bank recovery and resolution, it would be in Austria’s interest to swiftly introduce a full-fledged bank resolution framework, with a wide range of tools and powers, and strengthened resolution arrangements with non-EU countries.
Key findings
- The global crisis revealed weaknesses in Austria’s financial stability policy framework.
- A special bank resolution regime is needed to resolve problem banks without endangering financial stability or fiscal sustainability.
- Current policy preferences favor awaiting the formal adoption of the EU Directive on bank recovery and resolution.
Policy recommendations
- Swiftly introduce a full-fledged bank resolution framework.
- Ensure the framework includes a wide range of tools and powers.
- Strengthen resolution arrangements with non-EU countries.
Subject areas and keywords
- Subject: Bank resolution, Bank resolution framework, Banking, Deposit insurance, Financial crises, Financial sector policy and analysis, Financial sector stability, Lender of last resort, Macroprudential policy
- Keywords: Bank resolution, Bank resolution framework, CR, enforcement power, financial crisis, Financial sector stability, financial support, Global, government guarantee, ISCR, Lender of last resort, Macroprudential policy, problem bank, Resolution authorities, resolution framework