Austria: Publication of Financial Sector Assessment Program Documentation-Technical Note on Banking Oversight
IMF Staff Country Reports, March 2, 2020
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- Austria: Publication of Financial Sector Assessment Program Documentation-Technical Note on Banking Oversight
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Bibliographic details
- Published: March 2, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513535869.002
Executive summary
- The paper provides a targeted review of banking regulation and supervision in Austria, focusing on supervision of less significant institutions.
- National transposition and implementation of EU directives and regulations has significantly closed some of the gaps identified in 2013.
- Oversight of bank loan portfolios was strengthened by guidance from the European Central Bank and European Banking Authority (EBA) concerning nonperforming loans and forborne exposures, and by EU regulation.
- The Austrian Banking Act (BWG) and regulations do not establish an adequate framework for monitoring and addressing transactions with related parties.
- The BWG does not require ex-ante approval for acquiring qualifying holdings in undertakings outside the financial sector.
- Amendments to the BWG strengthened the duties and responsibilities of credit institutions’ supervisory boards; operational effectiveness could be improved by increasing interaction between the supervisory board and banking supervisors.
Findings on regulation and supervision
- Targeted review emphasis: supervision of less significant institutions.
- Progress since 2013: national transposition and implementation of EU directives and regulations have significantly closed identified gaps.
- Loan-portfolio oversight: strengthened by ECB and EBA guidance on nonperforming loans and forborne exposures, supplemented by EU regulation.
- Legal and supervisory gaps:
- Inadequate framework for monitoring and addressing transactions with related parties in the BWG and regulations.
- No BWG requirement for ex-ante approval for acquiring qualifying holdings in nonfinancial undertakings.
- Governance and supervisory interaction:
- BWG amendments enhanced duties and responsibilities of credit institutions’ supervisory boards.
- Operational robustness likely requires increased interaction between supervisory boards and banking supervisors.
Subjects and keywords
- Subjects: Bank supervision, Banking, Commercial banks, Credit, Credit risk, External balance assessment (EBA), External position, Financial institutions, Financial regulation and supervision, Financial Sector Assessment Program, Financial sector policy and analysis, Money, Nonperforming loans
- Keywords: bank, Bank supervision, CR, Credit, Credit risk, Eastern Europe, External balance assessment (EBA), Financial Sector Assessment Program, FMA governance, FMA issues circular, FMA place, FMA power, FMA regulation, FMA's view, Global, ISCR, Nonperforming loans, OeNB
International Monetary Fund. Monetary and Capital Markets Department "Austria: Publication of Financial Sector Assessment Program Documentation-Technical Note on Banking Oversight", IMF Staff Country Reports 2020, 067 (2020).
Content in this bundle
- Executive Summary