Austria: Publication of Financial Sector Assessment Program Documentation-Technical Note on Macroprudential Policy Framework and Tools

March 2, 2020

Preview Citation

Format: Chicago

Austria: Publication of Financial Sector Assessment Program Documentation-Technical Note on Macroprudential Policy Framework and Tools, (USA: International Monetary Fund, 2020) accessed October 13, 2024

Summary

This technical note assesses strengths and weaknesses of the macroprudential policy framework in Austria and provides policy recommendations. Financial sector resilience in Austria has improved significantly since the global financial crisis, and the macroprudential policy framework has been formalized. The institutional framework is appropriate for conducting macroprudential policy effectively, but it could be strengthened in some areas. However, some structural vulnerabilities to financial stability remain and cyclical risks are on the rise. Banks’ low efficiency and the resulting low profitability of domestic operations continues to be a key concern, especially given the fact that the Central Europe and South Eastern Europe region accounts for over 40 percent of Austrian banks' consolidated profits. The framework contains a clear mandate, well-defined objectives, and provides enough powers to the Financial Market Stability Board. Broad-based vulnerabilities remain contained but build-up of risks in the real estate sector warrants further action. The framework for addressing structural vulnerabilities is sophisticated, however, further improvements could be considered.

Subject: Banking, Financial institutions, Financial sector policy and analysis, Financial sector risk, Financial sector stability, Housing prices, Loans, Macroprudential policy, Prices

Keywords: Central and Eastern Europe, CESEE exposure, CESEE region, CR, Eastern Europe, Europe, Financial sector risk, Financial sector stability, FMA regulation, FMSB meeting, FMSB recommendation, FMSB secretariat, Global, Housing prices, Investment funds, ISCR, Loans, Macroprudential policy, North America

Publication Details

Pages:

31
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2020/064
Stock No:

1AUTEA2020004
ISBN:

9781513535814
ISSN:

1934-7685

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