Cover IMF Staff Country Reports
Austria: Selected Issues
Author: International Monetary Fund
Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2012: Issue 252
Language:
English
Publication Date:
31 Aug 2012
DOI:
https://doi.org/10.5089/9781475506785.002
ISBN:
9781475506785
ISSN:
1934-7685
Pages:
12
Keywords:
ISCR; CR; bank; loan; Loan-to-Deposit Ratio; LLSFR; asset; CESEE bank; CESEE subsidiary; CESEE subsidiaries' share; LDR ratio; asset quality; aggregate LDR; Credit risk; Loan loss provisions; Loans; Commercial banks; Liquidity risk; Europe
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The Austrian authorities introduced new supervisory guidance aiming at constraining the funding model of the three largest Austrian banks’ subsidiaries. The guidance introduced the concept of Loan-to-Local-Stable-Funding Ratio (LLSFR) as a monitoring tool of business model sustainability. Austrian banks’ subsidiaries have a significant market share in several Central, Eastern and South Eastern Europe (CESEE) countries. Evidence for CESEE banks suggests that the LLSFR is an appropriate tool to monitor the possible buildup of credit risk besides its more obvious role as an indicator of liquidity risk.
Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund