Austria: Financial System Stability Assessment

July 20, 2026

Summary

Austria started to slowly recover in 2025 after two years of recession, but the energy shock due to the Middle East conflict is weighing on the outlook. A large and complex banking sector with significant exposure to Central Eastern and Southeastern European countries (CESEE) dominates the financial sector. Despite domestic and external headwinds and a rise in NPLs in recent years in commercial real estate (CRE), the banking sector continues to be well capitalized, highly profitable and liquid, with strong
contributions from the CESEE subsidiaries. Key risks arise from subdued economic activity, exposure to CRE lending, and shocks in the CESEE region.

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Asset and liability management, Crime, Financial sector policy and analysis, Financial sector stability, Liquidity, Macroprudential Policy, Stress testing

Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), banking sector structure, central bank, cre loan, Europe, financial market, Financial sector stability, financial system composition, Fsap finding, Global, IMF staff, Liquidity, Macroprudential policy, Middle East, risk analysis, Stress testing, work of the Financial Sector Assessment Program

Pages:
62
Volume:
2026
DOI:
https://doi.org/10.5089/9798229054195.002
Issue:
181
Series:
Country Report No. 2026/181
Stock No:
1AUTEA2026003
ISBN:
9798229054195
ISSN:
1934-7685

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