Austria: Financial Sector Assessment Program-Technical Note on Selected Issues in Banking Regulation and Supervision of Less-Significant Institutions (LSIs)

IMF Staff Country Reports, August 18, 2026

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Canonical URL: Austria: Financial Sector Assessment Program-Technical Note on Selected Issues in Banking Regulation and Supervision of Less-Significant Institutions (LSIs)

Summarizes the main conclusions of the targeted review of banking regulation and supervision in Austria.
Focuses on how effectively and adequately risk-based supervision of “Less Significant Institutions” (LSIs) is implemented in Austria, with attention to the proactive application of the principle of proportionality to the large number of LSIs.
Based on the revised Basel Core Principles and considers the institutional context of the Eurosystem.
The 2026 Austria Financial Sector Assessment Program (FSAP) leveraged 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.
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 the updated context of this TN.

Bank supervision and the application of risk-based supervision to LSIs.
The application of the principle of proportionality given the large number of LSIs.
Alignment with international standards (revised Basel Core Principles) within the Eurosystem institutional framework.