IMF Staff Country Reports

This Technical Note (TN) summarizes the main conclusions of the targeted review of banking regulation and supervision in Austria. This targeted review mainly focuses on how effectively and adequately risk-based supervision of “Less Significant Institutions” (LSIs) is implemented in Austria, considering the proactive application of the principle of proportionality to the large number of LSIs. Based on the applicable international standards (the revised Basel Core Principles), in the institutional context of the Eurosystem, the 2026 Austria Financial Sector Assessment Program (FSAP) has leveraged the results of the 2025 Euro Area FSAP and is limited to LSIs. Significant legal and regulatory reforms have been implemented in Austria since the previous FSAP, and supervisory authorities have implemented strategic internal reforms adapted to their evolving supervisory needs. The partial implementation of the 2020 Austria FSAP recommendations on banking regulation and supervision has been assessed in that updated context.