The financial market supervisory authority supports encouraging a prudent distribution policy and permanently adhering to sustainable lending standards
Vienna (OTS) – Presenting the results of its country review of Austria as part of the mandatory Article IV mission, the International Monetary Fund (IMF) stated in a press conference today that the Austrian financial system is stable, liquid and profitable. At the same time, IMF mission chief Kevin Fletcher warned that there were still major risks, such as an intensification of geopolitical tensions, the risk of renewed turbulence on the goods, raw materials and energy markets and, as a result, a stalling of the slight economic upswing, which is affecting banks and institutional investors could lead to significant defaults in economically vulnerable sectors and particularly in real estate financing. The IMF therefore urges us to continue the prudent and sustainable regulatory and supervisory policy on the Austrian financial market. Specifically, the IMF demands:
- To protect against the consequences of negative shocks, Austria’s banks should use their currently high profits primarily to strengthen their capital buffers and pursue a prudent and prudent distribution policy.
- The sustainable lending standards for residential real estate issued by the FMA have proven themselves, are not strict and sufficiently flexible by international comparison and should therefore be retained permanently as a structural measure.
- Due to the great importance of commercial real estate financing in Austria, the increased risks should continue to be closely monitored.
“As a regulator and supervisor, we are pleased about the good report that the IMF has given the Austrian financial market,” said the FMA board members, Helmut Ettl and Eduard Müller: “But what is even more important to us is to protect the stability of the Austrian financial market Consistently implementing the IMF’s recommendations: to ensure a prudent distribution policy, to permanently ensure the tried and tested standards for sustainable lending for residential real estate and to continue and further develop consistent risk monitoring in the commercial real estate market.
Questions & Contact:
Financial market supervision
Klaus Grubelnik (FMA media spokesman)
+43/(0)1/24959-6006 or +43/(0)676/882 49 516
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