Stress Testing the Austrian Banking System

This paper describes the methodology, the data basis and the main results of OeNB stress tests for the Austrian banking sector, which formed an integral part of Austria's participation in the 2003 Financial Sector Assessment Program (FSAP) of the International Monetary Fund (IMF). Our analysis of potential fragilities in the Austrian banking sector suggests that in terms of capitalization the banking system is well equipped to withstand shocks caused by adverse macroeconomic and market conditions.