IDEAS home Printed from https://ideas.repec.org/p/imf/imfscr/2026-228.html

Austria: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis

Author

Listed:
  • International Monetary Fund

Abstract

While the ongoing Middle East conflict is weighing on the outlook, the Austrian financial sector has remained resilient in recent years in the context of domestic and international headwinds. Despite two years of a broad-based recession in 2023 and 2024, rising NPLs in particular in the commercial real estate segment until recently, the materialization of geopolitical risks and tighter monetary policy constraining demand, the banking system’s capitalization has continued to improve. 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. This reflects continued strong profitability in recent years, in particular from net interest margins driven by foreign activities. While profitability has declined since its peak in 2023, it remained relatively high with a return on equity at 8.9 percent in percent in 2025. Liquidity buffers are high, with weighted Liquidity Coverage Ratio (LCR) of 185 percent and an aggregate Net Stable Funding Ratio (NFSR) of 134.8 percent in September 2025. Less Significant Institutions (LSIs) have on aggregate higher capital ratios and higher liquidity buffers than Significant Institutions (SIs).

Suggested Citation

  • International Monetary Fund, 2026. "Austria: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis," IMF Staff Country Reports 2026/228, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2026/228
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=578971
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfscr:2026/228. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.