IMF Staff Country Reports

Austria: Selected Issues

Publication Date:

August 31, 2012

Electronic Access:

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Summary:

The Austrian authorities introduced new supervisory guidance aiming at constraining the funding model of the three largest Austrian banks’ subsidiaries. The guidance introduced the concept of Loan-to-Local-Stable-Funding Ratio (LLSFR) as a monitoring tool of business model sustainability. Austrian banks’ subsidiaries have a significant market share in several Central, Eastern and South Eastern Europe (CESEE) countries. Evidence for CESEE banks suggests that the LLSFR is an appropriate tool to monitor the possible buildup of credit risk besides its more obvious role as an indicator of liquidity risk.

Series:

Country Report No. 2012/252

Subject:

Banking Commercial banks Credit risk Financial institutions Financial regulation and supervision Liquidity risk Loan loss provisions Loans

Frequency:

Biannually