The supervisory reform in Austria that went into force on January 1, 2008, placed the Austrian financial supervision framework on a new footing. While the supervisory system has remained a dual one, with responsibilities shared by the Financial Market Authority (FMA), Austria’s independent, integrated financial supervisory authority, and the Oesterreichische Nationalbank (OeNB), Austria’s central bank, the reform tightened the links between micro- and macroprudential supervision, that is, supervision of individual institutions and supervision at the systemic level. As a consequence, the OeNB was assigned additional operational tasks in this field. The reform has provided a new structure for cooperation between the FMA and the OeNB in banking supervisory activities since the beginning of 2008.
The OeNB and the FMA expressly support close partnership in their cooperation on supervision of the banking sector. All on-site inspections relating to banking supervision are conducted by the OeNB, as a result of an inspection order issued by the FMA. The OeNB also has the right to request an audit or the expansion of an inspection order. A key element of this cooperation is the sharing of all supervisory-related data held by both institutions in a single database. Analysis of this data allows greater depth of monitoring, both of individual market participants and of the financial market as a whole.
Details on reform and cooperation between Financial Market Authority and Oesterreichische Nationalbank can be found in the publication “Banking supervision in Austria”.