Featured Product

    IMF Reports Assess Financial Sectors in Austria and Croatia

    March 02, 2020

    IMF published a report on results of the Financial System Stability Assessment (FSSA) for Austria, along with several technical notes under the Financial Sector Assessment Program (FSAP) on Austria. The technical notes cover the topics of financial stability analysis, stress testing, and interconnectedness; banking oversight; macro-prudential policy framework and tools; bank resolution and crisis management; anti-money laundering and combating the financing of terrorism; and regulation, supervision, recovery, and resolution regime prospects of the insurance sector. Also published was a staff report under the 2019 Article IV consultation with Republic of Croatia.

    The FSSA report on Austria highlights that authorities have proactively strengthened the financial stability framework since the previous FSAP. The IMF Executive Directors agreed with the thrust of the findings and recommendations of the 2019 assessment. The macro-prudential policy framework has been strengthened and the banks are, in aggregate, well-capitalized and resilient to severe macro-financial shocks. The regulatory framework has been amended to address some of the 2013 FSAP recommendations. Directors noted that, while a robust regulatory framework and prudential policy actions have lowered financial stability risks, challenges include interconnectedness, data and regulatory gaps, resource constraints, exposure to cross-border and money-laundering risks, and recent developments in the real estate sector. To maintain the stability and efficiency of the financial system, Directors called for enhanced monitoring of intra-group transactions and spillover risks.

    Additionally, the assessment on Austria shows that accurate calibration of prudential buffers and enhancement of data collection would help in timely identification of emerging risks, in particular from real estate and non-financial corporate sectors. Directors underscored the need to continue enhancing the resolution framework for banks and insurance companies, ensuring that resolution strategies are effective to contain spillover risks and that efficient information-sharing and cross-border cooperation arrangements are in place. They noted plan of the authorities to abandon the institutional reforms in banking oversight. Close collaboration between national and European bodies in the context of the resolution framework will also be helpful. Directors noted that the scope of the annual contingency testing program should be expanded to include amplification channels and encouraged the authorities to ensure funding in resolution.

    The staff report on Croatia highlights that the banking system, on the whole, remains profitable, liquid, and well-capitalized, but is subject to lingering uncertainties. Non-performing loans (NPLs) have further declined, mainly due to NPL sales. The Croatian National Bank (CNB) is monitoring deposit concentration and interest rate risk, as low rates on savings deposits is increasing the share of demand deposits. Also, the average capital base remains strong, with a capital adequacy ratio of 22.7%. 


    Related Links

    Keywords: Europe, Austria, Croatia, Banking, Insurance, Article IV, FSSA, FSAP, Macro-Prudential Policy, Resolution Framework, Systemic Risk, Stress Testing, CAR, IMF

    Featured Experts
    Related Articles

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News

    DNB Publishes Multiple Reporting Updates for Banks

    DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.

    February 28, 2023 WebPage Regulatory News

    NBB Sets Out Climate Risk Expectations, Issues Reporting Updates

    The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting

    February 24, 2023 WebPage Regulatory News

    EBA Updates Address Securitization Standards and DGS Guidelines

    The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.

    February 21, 2023 WebPage Regulatory News

    FSB Publishes Letter to G20, Sets Out Work Priorities for 2023

    The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023

    February 20, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8793