The Austrian Financial Market Authority (FMA) and the Oesterreichische Nationalbank (OeNB) have set five thematic priorities for fulfilling their banking supervision duties in 2026 for continuing to guarantee a secure, stable and well managed banking and financial system.
Further strengthening the resilience of the banking sector
The Austrian banking sector’s resilience has strengthened in recent years, but still needs to be further strengthened in light of prevailing geopolitical uncertainties, the weak development of the business cycle, and credit risk in the real estate sector and in industry. Under such conditions it is essential that banks are well capitalised.
The sustainable reduction of the non-performing loans ratio (NPL ratio) should be ensured. Banks with higher NPL ratios will be subjected to intensified monitoring, and will also be the focus of on-site inspections.
Strengthening ICT security
Banks’ resilience towards risks arising from information and communication technology (ICT) should be strengthened. For this purpose, the supervisor will accompany inter alia controlled cyber-attack simulations. Furthermore, a structured dialogue format is being developed with the relevant national stakeholders.
Dialogue with banks about specific applications for artificial intelligence (AI)
The supervisor will enter into a dialogue with banks regarding the use of artificial intelligence (AI). The supervisory approach regarding AI-based applications by banks should be developed and communicated.
ESG Risks in Banks
Banks’ risk management should afford adequate consideration to environmental, social and governance risks (ESG risks). The requirements set out in the European Banking Authority’s EBA Guidelines on ESG Risk Management should be integrated into the Supervisory Review and Evaluation Process for less significant institutions (LSI-SREP). Sustainability risks are to be addressed accordingly in the management talks with supervised entities.
Increasing efficiency in regulation and supervisory processes
The banking supervisor contributes actively towards European initiatives regarding the efficient design of regulatory and supervisory processes and leverages possibilities for simplification at national level. European developments for a more efficient design for supervisory processes are being reviews for adoption at national level and replicated accordingly as appropriate. Potential efficiency gains in the national reporting regime are being implemented. In addition, it is also planned to evaluate potential to increase efficiency in supervision by using new AI applications.
General Background
The FMA and OeNB set joint priorities annually for banking supervision for the coming year. The aforementioned five priorities must be considered in conjunction with the Single Supervisory Mechanism’s (SSM) supervisory priorities for 2026 in terms of their content, and are in line with the European Banking Authority’s (EBA) objectives and work programme.
Enquiries should be addressed to:
FMA
Boris Gröndahl
Telephone: +43 (1) 249 59-6010
Mobile: +43 676 8824 9995
E-Mail: [email protected]
OeNB:
Marlies Faulmann
Telephone: +43 (1) 404 20-6900
E-Mail: [email protected]