OeNB and FMA define their joint priorities for banking supervision for 2022

The Oesterreichische Nationalbank (OeNB) and the Austrian Financial Market Authority (FMA) have defined their priorities for banking supervision in 2022 on the topics of COVID-19 measures, digitalisation and ICT risks, ESG risks, regulation, sustainability of business models as well as the risks of real estate financing:

COVID-19 measures

The resilience and stability of the Austrian banking market while applying proportionality in a manner that adequately addresses risks is strengthened by means of suitable early warning measures and transparent communication in the COVID-19 environment. Transparency about the risk situation of the Austrian banking sector is created by means of targeted monitoring.

Digitalisation and ICT risks

The focus is on analysing and determining risks in conjunction with advancing digitalisation. A particular focus is on the impact of digitalisation on business models and evaluations of cyber security.

ESG risks

Climate risk aspects should be taken into account more intensely in the risk management of credit institutions. The national climate stress test, which was conducted by the OeNB for the first time in 2021, and other scenario analyses should be developed further. Credit institutions that are exposed to a particular extent towards climate risks should be recognised and accompanied in supervisory terms.

Regulation and Supervisory Policy

The supervisory methods, tools and processes should be adapted to new rules and outcomes. The aim is to make an active contribution to European legislation and European initiatives in relation to proportionality.

Sustainability of business models

The aim is to strengthen crisis resistances and the ability of business models to survive in the future. Banks with non-sustainable or weak business models should be recognised and the weaknesses subsequently named by means of suitable supervisory measures. The focus of the business models should be discussed as part of the structured dialogue with the credit institutions in question.

Real estate financing risks

The increasing risks in the areas of residential and commercial immovable property should be reduced by means of adequate microprudential and macroprudential measures. This should inter alia occur by conducting analyses of the lending standards as well as by improving the data bases.

The objectives presented are to be considered in conjunction with the supervisory priorities for 2022 of the Single Supervisory Mechanism (SSM) in terms of their content.

The joint priorities for banking supervision are defined and communicated annually for the following year by the OeNB and FMA.

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