Austria: Financial Sector Assessment Program-Technical Note on Macroprudential Policy Framework and Tools

Austria’s macroprudential framework has matured since the pandemic, but continued vigilance and proactive adaptation are needed to safeguard financial stability. The authorities have built a collaborative institutional setup involving the Oesterreichische Nationalbank (OeNB), Financial Market Authority (FMA), and Ministry of Finance (BMF), with the Financial Market Stability Board (FMSB) as the central decision-making body. The financial sector is resilient, with high profits and robust capital levels, supported by active use of macroprudential measures such as systemic risk buffers and borrower-based regulations. However, rising risks in the commercial real estate (CRE) sector, ongoing geopolitical tensions, and evolving European regulatory requirements underscore the need for Austria to maintain a strong, adaptive macroprudential framework.