Macroprudential Supervision

• Objectives and tasks

  The latest financial crisis has shown that, left by its own devices, microprudential supervision, which focuses on the safety and soundness of individual financial institutions, and a monetary policy aimed at maintaining price stability do not suffice to safeguard the stability of the financial system.

• Instruments

  Overview of macroprudential supervision’s instruments set out in Austrian Banking Act (BWG).

• Institutional framework

  The Financial Market Authority (FMA) is the designated authority for macroprudential instruments, but the Ministry of Finance, the Financial Market Stability Board (FMSB), and the OeNB also have an explicit role in macroprudential policy setting varying between instruments.