The banking system is back on its feet and non-performing loans are declining. The legal process for repossessions needs to be sped up. Further regulatory action should be taken if there are signs credit growth is starting to push up house prices.Read more
The government has developed a plan paving the way to lifting capital controls. Maintaining a robust macroeconomic stability framework will help avoid a disorderly outcome and will help insulate the economy from future economic shocks.Read more
With some major banks bailed out in the aftermath of the financial crisis, the repair of the banking sector is a top priority for Austria. Continuing to curb expectations of implicit guarantees and restoring profitability of banks will be key.Read more
Over the past 50 years, credit by banks and other institutions to households and businesses has grown three times as fast as economic activity. At these levels, further expansion is likely to slow long-term growth and raise inequality.