Austria: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis
IMF Staff Country Reports, August 18, 2026
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Bibliographic details
- Published: August 18, 2026
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229059381.002
Major findings: resilience amid headwinds
- The Austrian financial sector has remained resilient in recent years despite domestic and international headwinds, including the ongoing Middle East conflict.
- The banking system’s capitalization improved: the aggregate Common Equity Tier 1 capital ratio (CET1) reached 18.4 percent in September 2025, from 17.9 percent at the end of 2024.
- The resilience reflects continued strong profitability in recent years, in particular from net interest margins driven by foreign activities.
- Profitability declined since its peak in 2023 but remained relatively high with a return on equity at 8.9 percent in percent in 2025.
- Nonperforming loans (NPLs) rose, in particular in the commercial real estate segment until recently.
- The macroeconomic context included two years of a broad-based recession in 2023 and 2024, materialization of geopolitical risks, and tighter monetary policy constraining demand.
Liquidity and funding metrics
- Weighted Liquidity Coverage Ratio (LCR): 185 percent (September 2025).
- Aggregate Net Stable Funding Ratio (NFSR): 134.8 percent (September 2025).
- Liquidity buffers are characterized as high.
Heterogeneity across institution types
- Less Significant Institutions (LSIs) have on aggregate higher capital ratios and higher liquidity buffers than Significant Institutions (SIs).
Subject tags and keywords (as provided)
- Subjects: Asset and liability management; Credit; Financial Sector Assessment Program; Financial sector policy and analysis; Liquidity; Money; Stress testing.
- Keywords: cash flow; IMF staff; liquidity association; liquidity stress; risk network; solvency impact; solvency stress tests.
International Monetary Fund. Monetary and Capital Markets Department "Austria: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis", IMF Staff Country Reports 2026, 228 (2026).
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