Financial Stability Report 28

Downloads

• Financial Stability Report 28 (PDF, 3.2 MB) December 2014.

Studies and Analyses

• Management Summary (PDF, 72 kB) en Dec 15, 2014, 12:00:00 AM

• International Macroeconomic Environment: Weaker Global Growth and Geopolitical Tensions Rekindle Financial Sector Volatilities (PDF, 499 kB) en Dec 15, 2014, 12:00:00 AM

• Corporate and Household Sectors in Austria: Expansion of Debt Remains Muted (PDF, 761 kB) en Dec 15, 2014, 12:00:00 AM

• Austrian Banks in the Comprehensive Assessment (PDF, 246 kB) Fandl, Ferstl. en Dec 15, 2014, 12:00:00 AM

• Austrian Subsidiaries’ Profitability in the Czech Republic and Slovakia – CESEE Margins with an Austrian Risk Profile (PDF, 889 kB) Kavan, Widhalm. The Czech Republic and Slovakia belong to the small and increasingly concentrated group of countries in Central, Eastern and Southeastern Europe (CESEE) whose banking markets have continued to generate substantial profits for Austrian banks also after the outbreak of the financial crisis in 2008. This short study sheds light on why Austrian subsidiaries have been able to maintain their profitability in these two countries especially when compared to those in other CESEE countries. We find that the strong quality of their asset portfolios is the main contributing factor; also, the Czech and Slovak markets now offer net interest margins well above Austrian levels, while the credit risk level is close to that in Austria. By contrast, several other CESEE markets have recorded worsening credit quality and, consequently, dwindling
  returns. Despite some downside risks related to the low interest rate environment, the openness of the Czech and Slovak economies and a potential intensification in competition, it seems that, from a current perspective, Czech and Slovak subsidiaries can be considered the most stable earnings generators in Austrian banks’ international portfolio. en Banking sector, Austrian banks, financial stability, profitability, risks, Czech Republic, Slovakia G21, G28, P34 Dec 15, 2014, 12:00:00 AM

• Workshop Summary: Are House Prices Endangering Financial Stability? If So, How Can We Counteract This? (PDF, 145 kB) Schneider, Wagner. Against the background of recent house price increases in several European countries, the OeNB organized a workshop entitled “Are House Prices Endangering Financial Stability? If So, How Can We Counteract This?” It was held in Vienna on October 9 and 10, 2014. The workshop contributions2 demonstrated the complexity of assessing house price developments and of implementing macroprudential policy measures. One of the main policy conclusions was that collecting data on individual loan characteristics is a key priority for monitoring developments in the housing and mortgage loan markets. Housing markets, bubble, financial stability R3, G2, E6 Dec 15, 2014, 12:00:00 AM

• The Banking Recovery and Resolution Directive and the EU’s Crisis Management Framework: Principles, Interplay with the Comprehensive Assessment and the Consequences for Recapitalizing Credit Institutions in Crisis Situations (PDF, 401 kB) Huber, Merc. Within the EU, a new framework has been designed to define, when banks are considered no longer viable, how such banks can exit the market without creating widespread financial distress and how a smooth exit or recovery should be financed. It consists of a complex set of rules and international agreements, with responsibility for their implementation assigned to various authorities. This study analyzes the objectives of the new regime and the new powers of the various authorities involved, as well as the main underlying tradeoffs that are defining the policy debate in terms of the allocation of losses to various stakeholders, the associated conditionality and the degree of mutualization of decision-making and financing within the euro area and the EU at large. en Bank recovery and resolution, banking union, ESM, Single Resolution Mechanism, burden sharing, bail-in, precautionary recapitalization K230, K330, F360, F330 Dec 15, 2014, 12:00:00 AM

• Annex of Tables (PDF, 209 kB) Dec 15, 2014, 12:00:00 AM

• Notes (PDF, 131 kB) Dec 15, 2014, 12:00:00 AM