Austria selected issues (International Monetary Fund, 2012)
Title from PDF title page (IMF Web site, viewed Sept. 4, 2012). - "Prepared by Jerome Vandenbussche"--Page 2 of pdf. - "August 2012.". - "July 31, 2012"--Page 2 of pdf
Includes bibliographical references (page 11)
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