Foreword by the President

Dear readers,

The Austrian economy has been in a protracted recession since 2023. It is hard to quickly return to a long-term growth path under the circumstances we find ourselves in. The economy in Germany, our most important trading partner, is stagnating. The trade policy measures announced by the USA could lead to a further fragmentation of worldwide trade in the context of our multilateral trading system. As a result, the outlook for 2025 comes with uncertainties that will greatly challenge economic policymakers in Europe.

As in 2023, the Oesterreichische Nationalbank (OeNB) recorded a negative operating result in 2024 – for the second time in its history. For 2024, we are also reporting negative equity. That’s a first. But even with negative equity capital, the OeNB can still perform all of its tasks in the European System of Central Banks. Our balance sheet loss, resulting from monetary policy, has been reducing risk coverage capital. Against this background, the Governing Board decided to reduce risk and adjust the investment volumes in the OeNB’s reserve management for 2024. Financial markets performed satisfactorily in the reporting year, which had a positive impact on the OeNB’s investment performance as well.

For the Single Supervisory Mechanism (SSM), 2024 marked the 10th anniversary of its foundation. The SSM supports the stability and resilience of Austrian and European banks. Austrian banks are well placed to cope with the heightened economic and geopolitical challenges. The Austrian Financial Market Stability Board has taken important measures over the ten years of its existence. In doing so, it has reduced the risk of financial crises and strengthened financial stability in Austria.

Even in today’s increasingly digitalized society, cash remains an important and indispensable means of payment for many people in Austria. To ensure the widespread provision of cash across the country, the Austrian Association of Municipalities and Austrian banks have finalized an agreement with effect until 2029 that aims to secure cash supply in rural areas.

With its research grants, the OeNB once more confirmed its long-standing commitment to fund ­research related to economics. It supports independent and scientifically founded economic research as a public good, which also serves the underlying public interest. For 2025–2027, the OeNB granted core funding to five economic research institutions. From its Anniversary Fund, the OeNB also approved ­funding for 26 research projects on central bank-related issues in 2024.

I would like to thank the members of the Governing Board and the staff members working at the OeNB and the OeNB’s subsidiaries for their excellent work in 2024. I would also like to voice my appreciation for the excellent cooperation on the General Council.

Vienna, March 2025

Harald Mahrer, President

Foreword by the Governor

Dear readers,

2024 was another year marked by geopolitical conflicts and wars that created major political and economic challenges. In several key economies, elections were held. Their results are politically and economically important.

Economic activity in the euro area saw a small expansion again: GDP growth in 2024 was 0.7%. According to the ECB’s projections, economic growth will reach 1.1% in 2025 and 1.4% in 2026. Inflation visibly came down in 2023 and continued its downward trend in 2024. It amounted to 2.4% for 2024 as a whole. For 2025, an inflation rate of 2.1% is expected and, for 2026, a rate of 1.9%.

In 2024, various negative factors caused the Austrian economy to shrink for the second year in a row, with Austria’s GDP contracting by 1.0%. For the following years, we expect a modest recovery, with positive growth of 0.8% in 2025 and 1.6% in 2026. As Austria needs to consolidate its budget, there is a risk that these growth values might turn out lower. HICP inflation in Austria is projected to decline from 2.9% in 2024 to 2.4% in 2025 and further to 2.2% in 2026.

With euro area inflation moving toward the price stability target of 2%, the ECB Governing Council began to cut its key interest rates in June 2024. By the end of the year, it had reduced them in four steps, by a total of 100 basis points; and in January 2025, it cut them by another 25 basis points. The balance sheets of Eurosystem central banks continued to gradually normalize: Banks repaid loans under longer-term refinancing operations, and reinvestments under the Eurosystem’s asset purchase programs were discontinued.

For the euro area, the great financial crisis and the COVID-19 pandemic meant the risk of economic depression and deflation. To protect the euro area from these risks, unconventional monetary policy measures were used. As key interest rates were raised in 2022 and 2023, these measures implied losses for the Eurosystem and other central banks worldwide, also in 2024. When key interest rates are raised, this also means that central banks have to pay higher interest to commercial banks that deposit money with them. Currently, these interest expenses by far exceed the very small income from the large amount of bonds that central banks acquired with low or even negative yields.

Accordingly, the OeNB recorded a balance sheet loss of EUR 4.2 billion in 2024 as well as negative equity. This loss will be carried forward and offset by future profits. None of this, however, affects the effectiveness of monetary policy. Any profit or loss recorded by Eurosystem central banks, including the OeNB and the ECB, is a subordinate outcome of their joint mandate of safeguarding price stability in the euro area. After all, temporary losses arising from monetary policy are only part of the story. A story that must also include the economic benefits we reaped from the years of accommodative monetary policy – above all the stabilization of the euro area economy – and the positive impact on the general government budget. Austria, for example, has saved approximately EUR 51 billion on interest expenses since 2012 due to the Eurosystem’s nonstandard monetary policy, specifically low or even negative interest rates.

To conclude, let me express my heartfelt gratitude to the President and Vice President, the General Council, my fellow Governing Board members as well as all our staff members – for their great spirit of cooperation and commitment. It is this spirit that will allow us to reliably fulfill our core tasks also in the years to come.

Vienna, March 2025

Robert Holzmann, Governor

The OeNB at a glance and Austrian banks – key figures

The Austrian economy and payments in Austria – key figures

The OeNB’s tasks and strategies

“Security through stability. The euro – our currency.” This is the OeNB’s vision, as outlined in our mission statement . As Austria’s independent central bank, we are part of the Eurosystem and part of an inter­national network of policy organizations. Our core tasks are shown below – we seek to communicate them extensively to the general public:

With a view to fulfilling our tasks and delivering on our mandate, we have defined six strategic priorities for the period until 2025, as listed below. In the reporting year, we placed particular emphasis on the following topics: digital euro and cash, artificial intelligence and sustainability – areas which we will continue to pursue beyond 2024.

The OeNB in the Eurosystem and IMF, monetary policy and the economy

• The OeNB is a central bank with all-round expertise that seeks to lead the way in select areas within the Eurosystem.
• The OeNB is Austria’s knowledge and resource hub for monetary policy and theory, and our staff research supports the OeNB’s stance in the decision-making process of the Governing Council of the ECB.
• The OeNB handles IMF-related matters concerning Austria.
• The OeNB serves as a knowledge and resource hub for analyzing economic and financial policy challenges.
• The OeNB is the think tank on economic growth in Austria, monitoring in particular the alignment between microeconomic and macroeconomic patterns.
• The OeNB keeps serving Austria with cash in the digital age.
• The OeNB, as part of the Eurosystem, is working on the digital euro, which includes regular exchanges with its partners in Austria.

Financial stability and strategy

• The OeNB contributes to enhancing transparency through high-quality financial statistics, thus building trust.
• The OeNB helps safeguard the stability of the Austrian banking and financial system.
• The OeNB seeks to ensure effective rules and technology-neutral approaches to banking regulation in the EU’s banking union, advocating a narrower set of simplified rules for smaller banks.
• The OeNB contributes to reinforcing the stability of the Austrian capital market.
• The OeNB fulfills its monetary policy mandate and helps maintain the stability of the banking and ­financial system, implementing environmental, social and governance (ESG) criteria.

Financial innovation

• The OeNB plays a key role in developing and regulating financial innovations.
• The OeNB is crucial for making Austria’s financial system more resilient to cyberattacks.
• The OeNB works intensively with external partners to enhance financial innovation.

Financial education

• The OeNB contributes to financial education and hence to the financial health of the general public in Austria.
• The OeNB seeks to set international standards with its financial literacy initiatives in Austria.
• The OeNB is committed to leading the way in monitoring financial literacy and the effectiveness of related measures.
• The OeNB offers independent and accessible expertise with its financial education outreach programs for Austria.

Business organization, human resources and digital tech

• The OeNB sees itself as a modern business in Austria.
• The OeNB promotes ESG, i.e. sustainable as well as ethical behavior and good corporate governance.
• The OeNB seeks to be an innovative employer.
• The OeNB embraces digital tech and automation.

Communicating what we do

• The OeNB is a household name for the majority of Austrians.
• The OeNB is perceived as an independent and modern organization.
• The OeNB is seen as the leading authority in the areas of price stability, financial stability, economic policy, financial statistics, financial education, money and payments.
• The OeNB has earned the trust of the general public, financial market participants and other stakeholders, and is also considered to be a trusted employer.
• Our employees are proud to work for the central bank.
• Our communication across business areas is fast and efficient.

Inflation trending back toward target

Price stability objective well within reach

Inflation in the euro area declined significantly in 2023 and continued its downward trend in 2024. Ultimately, inflation dropped from its peak of 10.6% in October 2022 to 2.4% in December 2024. According to the Eurosystem’s projections of December 2024, inflation is expected to remain at just over 2% in early 2025. Then, from the second quarter of 2025 until the end of the projection horizon in 2027, inflation is forecast to hover around its 2% target.

The decline in consumer price inflation observed in the euro area, as measured by the Harmonised ­Index of Consumer Prices (HICP), can be traced back to a number of developments: In 2023, it was ­primarily falling crude oil and gas prices, and hence falling wholesale electricity prices, that caused inflation rates to decrease. Moreover, price increases for food were slowing. Some food items, such as bread, require a lot of energy to produce. Over the course of 2023 and 2024, prices for such items were thus growing at lower rates. In addition, increases in the ECB’s key interest rates started to show effect, curbing demand in the euro area and, with some lag, price rises, above all for industrial goods in both 2023 and 2024. Prices of industrial goods, such as cars, are typically more sensitive to monetary policy signals than those of services, for instance.

ECB Governing Council cautious in lowering key interest rates

Inflation in the euro area has been heading toward its target of 2%. In 2025, we expect inflation to converge with the ECB’s price stability objective. This is why, from June 2024 onward, the Governing Council of the ECB began to gradually cut its key interest rates. As one of the 26 members of this body, OeNB Governor Robert Holzmann was directly involved in these decisions. The ECB Governing Council lowered its key policy rates four times in 2024, by a total of 100 basis points, and by another 25 basis points in January 2025. As a result, the deposit facility rate, which serves as a benchmark for short-term money market rates, declined from 4% in June 2024 to 2.75% in early 2025. This has caused monetary policy to become significantly less restrictive.

So far, the ECB Governing Council has lowered its interest rates at a slower pace than it previously raised them. There are several reasons for this cautious approach:

First, it is still uncertain whether inflation will indeed reach the 2% target in the course of 2025. After all, prices for services, which come with a large weight in the HICP basket, have not shown clear signs of a downward trend (yet). While services inflation was lower in 2024 than in 2023, it kept hovering around 4% throughout 2024.

This was mostly due to wage developments. Wages are reflected more strongly in services prices than in other prices – after all, wages loom large as a cost factor in services. In recent years, wages in the euro area have been rising substantially (for information on the development of negotiated wages in Austria, see the OeNB’s blog post of August 12, 2024 , in German). Workers wanted to be compensated for real wage losses caused by high inflation. This has only partly been done, however. In the third quarter of 2024, real wages in the euro area were still lower than in early 2021. Hence, workers’ demands for higher wages, which would keep inflation above the 2% target, still cannot be ruled out.

In their macroeconomic projections of December 2024 , Eurosystem staff expect wage growth to drop from 4.6% in 2024 to 2.8% in 2027. As wages also rise in connection with economic growth, wage ­increases range above inflation rates on average. On this basis, the Eurosystem’s staff projections assume that workers will put less pressure on forthcoming wage negotiations, which will bring headline inflation down to levels fluctuating around 2% from the second quarter of 2025. Whether or not these projections will prove to be true, however, will depend on the outcome of the negotiations. This is yet another reason why the ECB Governing Council moves cautiously on cutting interest rates.

Second, there may be further price shocks in the euro area. As a case in point, gas prices doubled ­between February 2024 and the end of the year. The tariffs announced by US President Trump could also have inflationary effects in the euro area, should the EU implement retaliatory tariffs. What is more, ­inflation rates are set to fluctuate more strongly in future due to climate change (e.g. floods and droughts) and climate action (e.g. carbon pricing; see the OeNB’s blog post of January 22, 2024 , in German). ­Monetary policymakers need to carefully monitor shocks and their impact on inflation. This, too, validates the cautious approach taken to lowering interest rates.

Third, there is great uncertainty about the natural rate of interest, or r*, which is defined as the real rate of interest that neither stimulates nor slows the economy and thus inflation. In other words, r* has a neutral impact on economic activity and price developments. Yet, estimates of r* are surrounded by uncertainties, currently ranging somewhere between 1.5% and 3%. Assuming a rate at the estimated upper bound, monetary policy in the euro area would already be at its neutral level. To reach the lower bound, however, further interest rate cuts would be warranted. This range of estimates again calls for cuts to be made with caution.

When deciding on policy rate changes, the ECB Governing Council has therefore pursued a meeting-­by-meeting approach, taking into account the data relevant for the appropriate calibration of its monetary policy stance. This has allowed policymakers not only to assess the impact of previous interest rate cuts but also to consider recent developments. The Governing Council thus did not commit to a particular rate path in advance.

According to the Eurosystem staff macroeconomic projections of December 2024, economic activity in the euro area is forecast to recover slightly in both 2025 and 2026. More specifically, the projections point to real GDP growth of 1.1% in 2025, 1.4% in 2026 and 1.3% in 2027. Euro area output is thus ­expected to grow at around its potential rate.

In Austria, economic activity has been more subdued than in the euro area. The following box takes a closer look at Austria’s economic situation.

Industrial recession slows economic recovery in CESEE, inflation constant

Real economic growth in the EU member states in Central, Eastern and Southeastern Europe (CESEE) accelerated somewhat in 2024, averaging 2% — compared with 0.7% in 2023.

Growth was supported in particular by private consumption, which grew on the back of higher real incomes and robust labor market conditions. The labor market has, above all, been characterized by ­persistently low unemployment and moderate employment growth. Higher government spending is also contributing to economic growth in a number of CESEE EU countries.

Meanwhile, the industrial sector has been in a recession ever since the beginning of 2023. Due to the sector’s strong reliance on exports, this has caused net exports to contribute less to GDP growth and, in general, has been weighing on economic sentiment.

The rapid decline in inflation seen in CESEE since the beginning of 2023 came to a standstill in 2024, with average inflation remaining within a range of 3.5% to 4% in the second half of 2024. This was attri­butable to a number of one-off effects impacting energy and food prices in particular, and to persistently strong price pressures emanating from the services sector. By contrast, price growth of industrial goods has been easing. In light of these developments, most central banks in the region continued to lower their policy rates, but showed more caution in the second half of 2024 than at the start of the year.

Banking sectors in CESEE again showed a positive profit performance in 2024. Several of the region’s banking sectors even recorded historically high profitability. This reflected not only robust conditions in the banks’ retail business but also the solid quality of loans granted. The share of nonperforming loans (NPLs) was very low. Moreover, interest margins remained high in 2024. This meant that banks charged significantly higher interest rates on loans than they paid to their customers for their overnight or fixed-term deposits.

IMF: developments throughout the anniversary year

The objective of the IMF’s work is to safeguard the stability of the international financial and monetary system. Austria’s IMF quota — the share of resources provided by member countries — is held by the OeNB. The OeNB also represents Austria on the IMF Board of Governors. On this board, OeNB Governor Robert Holzmann serves as the IMF Governor for Austria. The position of IMF Alternate Governor for Austria was held by Vice Governor Gottfried Haber until November 2024; in December 2024, OeNB Vice Governor Edeltraud Stiftinger took over. The day-to-day business of the IMF is handled by the Executive Board. It is composed of 25 Executive Directors, some of whom represent countries that hold a single seat on the IMF Executive Board (USA, Japan, China, Germany, France, United Kingdom, Russia, Saudi Arabia). All other Executive Directors each represent several member countries, grouped together in constituencies. Austria forms a constituency together with Türkiye, Czechia, Hungary, Slovakia, Slovenia and Kosovo. From November 1, 2024, to October 31, 2026, Türkiye holds the position of Executive Director for this constituency, while Austria fills the position of Alternate Executive Director.

In 2024, there was reason to celebrate: First, 80 years had passed since the founding of the IMF and the World Bank. Second, Austria looked back on 75 years of IMF membership. To mark these occasions, the OeNB joined forces with the Bretton Woods Committee to organize an international conference in Vienna. Joining online, Kristalina Georgieva, Managing Director of the IMF, opened the conference. ­Centerpiece of the conference were three high-level panel discussions focusing on the changing role of the IMF, the green transition and the dynamics of capital flows. A summary of the debates can be found here: Bretton Woods @ 80 and Austria’s IMF Membership @ 75 — Occasional Paper No. 5 .

As usual, the who’s who in economics and finance met in Washington, D.C., in April and October. At these meetings, Austria issued a statement on behalf of its constituency in the International Monetary and Finance Committee (IMFC). The committee usually adopts a communiqué that provides guidance for the IMF’s work program. However, in October 2024, the IMFC, for the 6th time, failed to issue a joint communiqué owing to representatives’ differing views on international conflicts.

In Austria, the law on the IMF quota increase entered into force in 2024, permitting Austria to contribute to the IMF’s 16th general review of quotas. This review will take effect once a sufficient number of ­member countries have agreed to their respective quota increases. Subsequently, IMF members will see their quotas rise proportionally by 50%. To maintain the IMF’s current lending capacity, transitional arrangements had to be put in place until the quota review becomes effective. Among other things, Austria’s participation in the New Arrangements to Borrow (NAB) was prolonged from 2026 to 2030. In addition, the term of the OeNB’s Bilateral Borrowing Agreement with the IMF was extended until, at the latest, December 31, 2027.

In 2024, the IMF conducted two visits to Austria. During its Article IV consultation at the end of ­February, the IMF delegation focused on how to ensure a sustainable recovery of economic activity. ­During a shorter staff visit in September, discussions centered on how to achieve a robust recovery, a sustained reduction in inflation and higher growth over the medium term.

The next IMF Article IV consultations with Austria are scheduled for 2025. As was last done in 2019, the IMF will also conduct a mandatory, in-depth analysis of the Austrian financial sector under the Financial Sector Assessment Program (FSAP).

Monetary policy operations affect the OeNB’s operating result

Central banks reduce their balance sheets following years of crisis measures (2015—2022)

In the years following 2008, the euro area was faced, first, with the great financial crisis, then with a sovereign debt crisis and finally with the COVID-19 pandemic. Each of these crises came with the risk of deflationary developments. To prevent deflation, euro area monetary policymakers responded by cutting key interest rates, which had already stood at around or just below 0%, and by launching asset purchase programs and longer-term refinancing operations. As a result, euro area central banks, among them the OeNB, saw their balance sheets expand significantly.

To prepare for future crises and create room for new crisis instruments, it is crucial for central banks to reduce the size of their balance sheets during non-crisis times. This is precisely what has been happening in recent years: In 2023, the consolidated balance sheet of the Eurosystem was cut by just over EUR 1 trillion. 2024 saw a major reduction too, in particular in portfolios reflecting monetary policy crisis tools. Their balance sheet value declined by as much as EUR ¾ trillion in the reporting year. However, since other balance sheet assets, such as gold and gold receivables, recorded an increase in value, the Eurosystem’s balance sheet ended up shrinking by only EUR ½ trillion.

So far, the balance sheet reduction has predominantly resulted from banks repaying funds borrowed through targeted longer-term refinancing operations (TLTRO III). The third TLTRO series started before the coronavirus crisis hit and was then adapted to respond to the impact of the crisis. Under this program, banks could borrow funds from the Eurosystem at a very favorable rate for a maximum of three years. Banks could benefit from this lower interest rate if they kept lending to the real economy. Demand for TLTRO III funds was particularly high in 2020, bringing the total uptake by euro area banks to EUR 2,206 billion. Of this amount, EUR 87 billion were borrowed by Austrian banks. Given a loan term of three years, repayments were especially high in 2023, coming to EUR 925 billion. 2024 still saw repayments in the amount of EUR 392 billion, with the last operation being repaid to the Eurosystem in December 2024. This concluded the TLTRO III series.

Moreover, the Eurosystem’s asset purchase programs are winding down. Net asset purchases under the asset purchase programme (APP) were discontinued in mid-2022; until mid-2023, principal payments from maturing securities were partly reinvested. Since then, there have been no further investments in the APP portfolio. Once APP securities mature, they are redeemed in full and then drop out of the balance sheet.

Under the pandemic emergency purchase programme (PEPP), the Eurosystem made net purchases from March 2020 to March 2022. While principal payments from maturing securities were reinvested in full until mid-2024, this was only partly done in the second half of the year, causing the Eurosystem’s PEPP portfolio to shrink by EUR 7.5 billion per month. At the end of 2024, reinvestments under the PEPP were completely discontinued.

Taken together, APP and PEPP holdings thus were reduced by EUR 365 billion in 2024. This roughly corresponds to 8% of total Eurosystem holdings under these programs, which stood at around EUR 4.5 trillion at end-2024. If this reduction were to continue at the same pace in the coming years, the portfolio would shrink to half its size by 2030. Put differently: The securities purchased to address various crises will ­remain on the Eurosystem’s balance sheet for quite some time.

Standard refinancing instruments continue to be available to monetary policy counterparties both in Austria and the euro area. Main refinancing operations are executed on a weekly basis with a maturity of seven days. Longer-term refinancing operations are offered on a monthly basis with a three-month maturity. Looking ahead, we expect banks to increasingly rely on these standard operations again to cover their ­liquidity needs.

ECB adjusts interest rates on standard refinancing instruments

From June 2024 until the editorial deadline for this report, the ECB lowered its three key interest rates in five steps. The deposit facility rate was reduced by a total of 125 basis points. In the current environment, this interest rate is the relevant one for the money market. In addition, the ECB Governing Council decided to reduce the spread between the main refinancing rate and the deposit facility rate from 50 to 15 basis points as of September 18, 2024. In the course of 2024 up to the editorial deadline, the main refinancing rate and the marginal lending facility rate were cut by 160 basis points in total. Narrowing the spread is intended to bring down banks’ costs for borrowing liquid funds from the Eurosystem and to limit the volatility of money market rates. Due to persistently high excess liquidity, interest rates on the interbank market remained below the deposit facility rate throughout 2024.

How will the Eurosystem steer money market rates going forward?

Given expiring crisis measures, the ECB Governing Council reviewed the operational framework for ­implementing monetary policy. In March 2024, the new operational framework was adopted; the next review is scheduled for 2026 and will take into account developments in market activity and excess ­reserves. The ECB Governing Council takes its monetary policy decisions every six weeks, setting the three key interest rates: (1) the rate on the marginal lending facility, which offers overnight credit to banks against collateral (securities); (2) the rate on the main refinancing operations, which allow banks to raise liquidity and (3) the rate on the deposit facility, which banks may use to make overnight deposits with ­Eurosystem central banks. The rates on the marginal lending facility and the deposit facility form a ­so-called corridor around the main refinancing operations rate.

The Eurosystem uses this key interest rate corridor to steer short-term money market rates, i.e. those rates at which commercial banks lend short-term (overnight) funds to other banks. The interest rate ­corridor thus creates an upper and lower bound for the overnight rate on the interbank market (euro short-term rate — €STR). Where exactly the interbank rate is moving within these bounds depends on the dynamics between the supply of and demand for central bank reserves. It is only when the Eurosystem precisely matches its supply of reserves with banks’ demand that the money market rate will be moving exactly in the middle of the corridor.

The large amounts of excess reserves can be traced to the crisis measures undertaken in the past few years. From 2015, short-term money market rates were thus moving around the lower bound of the ­corridor. However, excess reserves (and thus the Eurosystem’s balance sheet) will decrease in the coming years, as crisis measures expired and, in particular, APP and PEPP portfolios mature. As a result, money market rates will rise within the corridor, which may cause these short-term interest rates to fluctuate more strongly. For this reason, the interest rate corridor, bounded by the marginal lending facility rate at the top and the deposit facility rate at the bottom, was narrowed — from 75 to 40 basis points. This allows for potential fluctuations to be contained within more narrow bounds.

Until the next review of its operational framework in 2026, the Eurosystem will ensure operational robustness by employing a mix of monetary policy instruments. These instruments will include short-term credit operations (main refinancing operations and three-month longer-term refinancing operations). Should the Eurosystem need to expand its balance sheet again, new structural longer-term refinancing operations and a structural portfolio with euro area securities will be introduced at a later stage.

Minimum reserves remunerated at 0%

Minimum reserves are balances that commercial banks are required to hold on dedicated accounts with the Eurosystem, usually with their national central bank. On average, Austrian banks were required to hold reserves of around EUR 4.7 billion with the OeNB in 2024. As of September 20, 2023, the remuneration of these reserves was reduced to 0% to make monetary policy for the Eurosystem more efficient.

Providing liquidity in US dollar

In addition to providing liquidity in euro, the Eurosystem also executes weekly tender operations in US dollar with a maturity of one week. To be able to provide US dollar liquidity in the event of bottlenecks, the Euro­system may adapt the maturity and number of these operations.

In 2024, US dollar tender operations were offered on a weekly basis. In sum, USD 8.9 billion were ­allotted to the Eurosystem, with Austrian banks taking up some 10% of this amount.

Imbalance between interest expense and interest income results in loss
for the year and negative own funds

The OeNB recorded a negative operating result of EUR 2.1 billion for the year 2024. Including the loss of EUR 2.1 billion carried forward from 2023, this brings the OeNB’s loss for the year to a total of EUR 4.2 billion. This result will be carried forward to 2025. The loss was again due to the negative interest income from monetary policy, which was driven by the same factors as in 2023.

In an annual average, Austrian banks’ deposits with the OeNB summed up to EUR 87.3 billion in 2024 and were remunerated at the applicable interest rate for the deposit facility. This rate declined from 4.0% in early 2024 to 3.0% at the end of the year, bringing the interest the OeNB paid to banks to an average of 3.7%.

This compares with interest income from securities held for monetary policy purposes, which the Euro­system had bought in response to previous crises. On average, the OeNB recorded securities worth
EUR 106.6 billion on its balance sheet in related portfolios. Most of these securities were purchased during a period of low or negative interest rates.

Overall, the imbalance recorded between interest expense and interest income inevitably led to losses. These continued to be mitigated by income from the OeNB’s investment of reserve assets in 2024. Still, due to its loss for the year, the OeNB is not able to pay a dividend to the Austrian government.

The loss carried forward will be offset by future profits. In this context, the OeNB is guided by the ECB’s Convergence Report: According to this report, any situation should be avoided whereby a central bank’s equity is negative for a prolonged period of time. This means that the loss carried forward will first be reduced before any profit is allocated to reserves or paid out as a share of profit or dividend to the state.

Since the accounting rules for the European System of Central Banks were changed in 2024, the OeNB’s loss for the year is recorded as a negative item on the liability side of the balance sheet from now on. This reduces the OeNB’s total assets and liabilities. Moreover, the new presentation increases transparency for readers. In 2023, the loss for the year had been listed on the asset side of the OeNB’s balance sheet.

Negative own funds reported for the first time

The OeNB’s loss for the year 2024 exceeds the OeNB’s capital and reserves. This is why the OeNB for the first time reports negative own funds (or “negative equity”). What does this mean for a central bank? Negative equity does not limit central banks in their actions. Even with negative equity, the OeNB can still perform all of its tasks in the European System of Central Banks. The effectiveness of monetary policy and the independence of the central bank will remain unaffected.

Will it be any different next year?

Owing to the long maturities of the securities in the monetary policy portfolios, the portfolios are slow to mature. Correspondingly, the amount of commercial banks’ deposits will also decline at a slow pace. While we expect the result of monetary policy operations to increase from 2025, it is likely to remain negative in the next few years. Against this backdrop, we expect the OeNB to report negative equity also
in the years ahead. It is only in the medium to long term that the losses carried forward and thus the negative equity will be offset by future profits.

Reserve management yields positive results thanks to favorable financial
market developments

Our 2023 loss for the year resulting from monetary policy reduced the risk coverage capital available for the purpose of ensuring risk protection. With this in mind, the OeNB Governing Board decided to reduce risk and adjust the investment volumes in its reserve management for 2024. Increases in the value of our investments had a positive impact on our operating result.

The investment of reserves is subject to comprehensive risk management procedures and controls. Our primary investment goal is to maintain a high degree of liquidity and security to ensure the ready availability of funds for coordinated intervention in financial markets. Another key criterion guiding investment decisions is diversification (chart 4). Gold, for example, accounts for around 64% of the OeNB’s reserves. Our investment mix relies on different currencies and regions. We mainly buy debt securities (around 29%), but also stocks (around 7%). Diversification into corporate bonds and stocks serves to improve the risk-return ratio. The predominant currencies are convertible currencies of countries with excellent credit ratings. The predominant bonds are bonds issued by governments, agencies and supranational institutions, as well as covered bonds. This strategy has been a cornerstone of the OeNB’s stability for many years.

Investment performance benefits from financial market developments

Both bond and equity markets performed positively in 2024. Sentiment was favorable across financial markets. This was due, in particular, to slowing inflation, decreasing monetary policy rates and good corporate results.

On the equity markets, marked increases in US stock prices stood out: At +23.3%, the US stock ­exchange index S&P 500 rose much more vigorously than the EURO STOXX 50 index for the euro area at +8.3% (chart 5). Austria’s main stock index ATX rose by 6.6%. The US stock market benefited from the continued strong performance of the technology sector. In addition, stock market developments were increasingly supported by the outcome of the US presidential elections in the second half of 2024, with investors hoping for deregulation and tax breaks for US companies.

Government bond markets benefited, among other things, from the interest rate cuts made by major western central banks. German and US govern­ment bonds recorded similar price gains throughout 2024 for durations of more than seven and close to six years, respectively (+0.6% each). Austrian government bonds with a duration of around 8.5 years gained 1.9%.

The euro depreciated against the US dollar and the pound sterling in 2024. Unlike the US Federal Reserve System and the Bank of England, the ECB had lowered its policy rates more rapidly than ­expected. The US dollar was boosted further as Donald Trump was elected, appreciating by 6.7% against the euro during 2024. The pound sterling appreciated by 4.9% against the euro, owing to the Bank of England’s monetary policy, which proved to be more restrictive than anticipated over the year. By contrast, the Japanese yen depreciated against the euro by 4.4%. This is due, in particular, to the Bank of Japan’s monetary policy, which continues to be relatively accommodative.

Beyond profit: in pursuit of sustainability in investing

At the OeNB, we have been taking sustainability criteria into account in our reserve management for many years now. Since 2011, external asset managers working for us have had to be signatories of the United Nations-supported Principles for Responsible Investment. These principles include environmental, social and governance (ESG) aspects. As in the previous year, the OeNB will publish climate-related aspects of its nonmonetary policy portfolios (see Climate-related financial disclosures by the OeNB ).

The OeNB actively contributes to financial stability

Austrian banking sector in a challenging environment

Austrian banks continued to perform well in 2024, despite the challenging economic environment in Austria. Their profitability was high by historical standards. This is largely attributable to improved net interest income in Austria and favorable developments in Central, Eastern and Southeastern Europe (CESEE ­including Russia). Banks’ net interest income also includes interest income from depositing excess liquidity with the OeNB. Profits stood at EUR 10.7 billion in the third quarter of 2024, slightly down from the record year 2023. Banks used this favorable profit situation to further build up capital and thus strengthen resilience. The common equity tier 1 (CET1) ratio reached 17.5% in the third quarter of 2024, above the European average. Banks’ liquidity positions also remained solid, despite declining central bank liquidity.

The annual OeNB stress test confirmed the Austrian banking system’s resilience in 2024. It highlighted the importance of good initial capital levels, especially in challenging times. The stress test scenario was based on the following assumptions: a global recession, falling inflation and interest rates, and persistent geopolitical risks. In the stress scenario, the banking system’s CET1 ratio fell by 5.2 percentage points over three years, reaching 12.2%. For the first time, dynamic effects such as credit growth and reactions by banks were also taken into account in the stress test. The conclusion was: Well-capitalized banks can ensure an adequate supply of credit to the economy even in a difficult economic environment.

Credit quality continued to deteriorate in 2024 (chart 6). The main reasons behind this deterioration are higher levels of interest rates and the weak economic situation in Austria. Nonperforming loans (NPLs) as a share of total loans increased to 2.8% in the third quarter of 2024. The NPL ratio was particularly high for loans to small and medium-sized enterprises and commercial real estate loans (both above 5%). By contrast, the credit quality reported by CESEE subsidiaries has hardly changed.

External assessments confirm: Austrian banking system is resilient

Efforts by banks and supervisory measures (such as higher capitalization and good lending standards) have been effective in strengthening financial ­stability in Austria. International institutions like the IMF have also found Austrian banks to be resilient. This is confirmed by credit rating agencies. As a case in point, the Austrian deposit guarantee scheme proved to be effective and stable in 2024 when a deposit guarantee event occurred. A conference at the OeNB in September 2024 confirmed that the high levels of uncertainty and geopolitical risks we are currently seeing call for resilience. Moreover, a functioning deposit guarantee scheme is essential for confidence in the stability of the financial system. This is particularly important in an economically challenging environment.

Supervision contributes to Austrian banks’ resilience

In 2024, targeted macroprudential measures, such as sustainable lending standards and capital buffers, continued to contribute to preserving financial stability and mitigating systemic risks, i.e. risks to the financial system as a whole.

Lending standards for new residential real estate loans have improved significantly since the introduction of the regulation for sustainable lending standards for residential real estate financing (KIM-V) in mid-2022. Thanks to the effectiveness of the KIM-V regulation and banks’ increased capitalization, in 2024, the OeNB noted that the Austrian financial system is no longer subject to increased systemic risk. In this case, the law provides for the regulation to expire on June 30, 2025. Still, we need incentives to ensure sound lending standards also in the future. These need to be aligned with the requirements set out in the KIM-V regulation. Binding lending standards are common practice at international level these days.

In 2024, the Austrian supervisors decided to introduce a sectoral systemic risk buffer. This buffer targets risks for the financial system that emanate from commercial real estate loans. These risks depend on the type and amount of collateral, the conditions and structure of loans (e.g. bullet type) and the business models of the debtors. In Austria, commercial real estate loans account for a large share of Austrian banks’ total ­assets. With this in mind, the Financial Market Stability Board (FMSB) made the following assessment based on analyses conducted by the OeNB: If the economic environment deteriorates further, potential losses from commercial real estate loans may pose increased risks to financial stability. The FMSB therefore ­recommended that the Austrian Financial Market Authority (FMA) should introduce a sectoral systemic risk buffer of initially 1% as of mid-2025 (to be held in CET1 capital).

Structural macroprudential capital buffers strengthen the resilience of the banking sector. As implied by its name, the systemic risk buffer serves to cover the systemic risks that may affect individual banks. The capital buffer for other systemically important institutions (O-SII buffer) applies to banks that can pose ­systemic risks to the banking system. The structural systemic risks in the Austrian banking system have not changed significantly over the past two years. For a small number of banks, the size of the O-SII buffer has changed; this is mostly due to the completion of the phase-in period. The level of the systemic risk buffer, by contrast, has remained unchanged. For the O-SII buffer, the methodology for calculating the buffer has been adjusted to differentiate more strongly between banks with varying degrees of systemic importance.

The level of the countercyclical capital buffer of 0% was maintained, as no excessive credit growth was identified, judging against the background of economic growth.

Detailed analyses of financial stability topics are published in the OeNB’s semiannual Financial Stability Report .

Ten years of European banking supervision: positive outcomes also for Austria

In 2024, we celebrated ten years of European banking supervision under the Single Supervisory Mechanism (SSM). The SSM raises the stability and resilience of European banks. For example, the capitalization of significant institutions supervised under the SSM, as measured by the CET1 ratio, has visibly risen: from 11% in 2014 to almost 16% in the third quarter of 2024. For Austria, the CET1 ratio has increased even more sharply (chart 7). Banks have proved resilient during various crises: the US regional bank crisis in 2023, the pandemic and the 2022 energy crisis. Since Austrian banks have massively reduced their NPL portfolios, they are well placed to cope with the heightened economic and geopolitical challenges. Their improved balance sheet indicators have allowed them to effectively address the impact of climate change, cybercrime and the challenges posed by digitalization.

In Austria, the OeNB and the FMA play a major role in supervising significant institutions and are directly responsible for supervising less significant institutions. What makes a bank significant? The total value of its assets exceeds EUR 30 billion; it has economic importance for the specific country or the EU as a whole; and it records cross-border activities. A supervised bank can also be considered significant if it is one of the three most significant banks established in a particular country. In September 2024, 113 institutions across the SSM were classified as significant. Of these, 6 were headquartered in Austria (Addiko Bank AG, BAWAG Group AG, Erste Group Bank AG, Raiffeisen Bank International AG, Raiffeisenbankengruppe OÖ Verbund eGen and Volksbank Wien AG). With effect from January 1, 2025, a further Austrian bank was declared a significant institution, namely Raiffeisen-Holding Niederösterreich-Wien.

Operational activities within the SSM are carried out by European supervisory teams, known as joint ­supervisory teams. Each significant institution is assigned such a team. In addition to ongoing supervision, work under the SSM includes on-site inspections and internal model investigations. Moreover, the SSM promotes the development of prudential strategies and guidelines, addressing horizontal issues from a pan-European perspective.

Key areas of on-site inspections in 2024

In 2024, banking supervisors in Austria focused on credit, liquidity and cyber risks in their on-site inspections. This focus was driven by geopolitical tensions and the challenging economic environment. In the course of an initiative coordinated across Europe, supervisors examined banks’ liquidity risk. Other supervisory priorities included financing risks, contingency plans and the calculation of regulatory indicators.

Due to the current market environment, risks and defaults increased for commercial real estate loans. Therefore, credit risk assessments focused in particular on commercial real estate loans, as well as on international financial reporting standard IFRS 9 (valuations, among other things), and environmental, social and governance (ESG) risks. The results showed room for improvement in banks’ risk management systems, especially when it comes to identifying and processing problematic loans.

Cyber resilience is becoming more important for the Austrian financial market

The rapid progress of digitalization in the financial sector makes IT risks more relevant. In 2024, preparations for the EU regulation on digital operational resilience for the financial sector (DORA Regulation) were taken forward. The DORA Regulation became effective in January 2025. Its aim is to strengthen the financial ­sector’s resilience to cyberthreats and other IT risks.

In Austria, DORA-related preparations include work on TIBER-AT. TIBER stands for threat intelligence-­based ethical red teaming and basically means that ethical hackers (red team) take on the job of simulating real-life cyberattacks against a given financial entity. During a pilot phase in 2024, the OeNB conducted its first TIBER tests on Austrian financial entities in cooperation with the FMA. The results of these tests are now feeding into the implementation of the DORA Regulation. The latter requires certain financial entities to perform threat-led penetration testing as of 2025, i.e. simulations of real-world cyberattacks on an organization. For financial entities conducting such structured simulations, the TIBER framework is the relevant standard.

The OeNB also participated in the ECB’s SSM-wide cyber resilience stress test, in which all important Austrian banks participated. Banks faced a scenario in which a cyberattack severely affected the databases of each bank’s core systems. Overall, the stress test showed that the examined banks have crisis management procedures and business continuity plans in place. Its results fed into the Supervisory Review and Evaluation Process (SREP), which takes into account banks’ individual risk profiles. The stress test helped banks and supervisors to become more aware of strengths and weaknesses in the area of cyber resilience.

Supervisory priorities for 2025

In order to maintain a safe, stable and well-managed banking and financial system, the OeNB and the FMA set the following supervisory priorities for 2025:

• safeguarding banking sector resilience, focusing on credit and real estate risks;
• staying on top of digitalization, cybersecurity and artificial intelligence;
• addressing climate-related and environmental risks and the associated transformation of the eco­nomy; and
• addressing governance issues.

These four main objectives are in line with the SSM supervisory priorities and the European Banking ­Authority (EBA) work program for 2025.

Basel III finalized; other regulatory issues affect Austrian financial sector as well

The 2021 banking package will be applied in the EU from January 2025. It implements the globally agreed Basel III reforms and includes adjustments to the Capital Requirements Regulation (CRR III) and the ­Capital Requirements Directive (CRD VI). A core element is the introduction of an output floor, which was set at 72.5%. This means that if a bank calculates its capital requirement using internal models, the value it comes up with may be lower than the capital requirement calculated under the standardized approaches, but by no more than 27.5%. As part of the 2021 banking package, ESG risks were also explicitly anchored in the regulatory and supervisory framework. This concerns areas such as reporting, disclosure, stress testing and the SREP.

From 2025, the EU regulation on markets in crypto assets (MiCA Regulation) will become fully applicable. This also affects the financial sector and its interaction with the crypto industry and crypto markets. Banks do not need a MiCA license to issue crypto assets in the EU. If banks issue asset-referenced tokens or e-money tokens, the associated supervisory responsibilities are shared between the OeNB and the FMA, just like for banking supervision. This was laid down in the Federal Act enforcing the MiCA Regulation in Austria (MiCAR Enforcement Act). So far, Austrian banks have only issued crypto assets to a very limited extent. The slow uptake might also be attributable to some gray areas remaining in the regulatory framework.

The European Commission conducted a consultation in 2024 to assess macroprudential policies for nonbank financial intermediation (NBFI). The overall objective is to harmonize the macroprudential framework across Europe. The OeNB and the FMA participated in this consultation. Currently, NBFI in Austria does not pose any systemic risks. Still, nonbank financial intermediaries should be monitored more closely due to their growing importance. This requires improved data availability.

Data governance at the OeNB relies on a comprehensive strategy

In 2024, the OeNB developed a new data governance strategy, introducing data governance roles as one key element. Another cornerstone of the strategy was creating a new data catalog to document all relevant OeNB data and allow for their rapid retrieval. Our data governance strategy defines standards and guidelines for efficient and transparent handling of data at the OeNB. We also established a new Data Office to provide support in all internal data governance matters.

New platform for storing and analyzing data

In September 2024, the OeNB launched an internal platform for storing and analyzing data. This platform comprises a central data lake, i.e. a large storage for structured and unstructured data. This addresses the key challenges of today’s data management. Using suitable tools and artificial intelligence will enable us to cope with rapid data growth as well as increasingly demanding and complex requirements.

Platform on savings account rates in Austria – a popular OeNB product

In December 2023, the OeNB presented a new public transparency platform for savings account rates (in German). On this platform, we provide information about the interest rates Austrian banks offer on ­savings deposits. We launched this project in close cooperation with the banks themselves and the Austrian Economic Chambers. Around 115,000 visits were registered on the platform in 2024, with a particularly high level of interest around World Savings Day.

New Research Desk to support economic research

The OeNB has enhanced the availability of its comprehensive datasets by establishing a Research Desk , which provides a steadily growing range of granular data, primarily to universities and research institutes. With this service, we make an important contribution to strengthening economic research in Austria. At international level, the Research Desk will closely collaborate with European peer institutions, especially in the euro area.

Developing a statistical in-house credit assessment system

In order to assess the creditworthiness of nonfinancial corporations, the OeNB digitizes and records their annual financial statements in an automated process. Together with the Deutsche Bundesbank, a long-standing partner in this area, we are looking into the introduction of a purely statistical rating platform, taking the existing in-house credit assessment system as a starting point.

Early detection of potential issues in the banking system

Since 2023, our Statistics Department has been working thoroughly with use cases for AI. One project is concerned with identifying patterns that point to gross irregularities at individual banks. This involves linking available reporting data, using state-of-the-art methods of machine learning and AI. The results from applying innovative methods of supervised and unsupervised machine learning suggest that they can further improve banks’ monitoring. It will also be possible to use OeNB data more efficiently and more comprehensively.

In 2024, we launched a three-year implementation project to create the technical infrastructure necessary to calibrate, implement and use these machine learning models as part of our ongoing operations.

Novelties in reporting at EU level

Under the amended EU Capital Requirements Regulation (CRR III) banks need to adapt and, in some ­instances, significantly expand their reporting to supervisors. This will allow supervisors to monitor capital ratios and their compliance with the new CRR III rules from 2025 and to ensure that sustainability-related data requirements are met (also see “The OeNB actively contributes to financial stability” on the finalization of Basel III).

In parallel, a common system is being developed within the ESCB, for the collection, processing and analysis of data in the euro area. It is called the IReF (Integrated Reporting Framework) and aims to harmonize statistical reporting in the euro area.

To minimize the burden on reporting institutions and regulators, the Joint Bank Reporting Committee (JBRC) was set up. Through cooperation of regulators and banks, it aims, among other things, at reducing redundancy in reporting and increasing understanding of the new requirements. OeNB experts contribute to these improvements of EU level reporting in important ways, e.g. by chairing working groups or occupying other central roles.

Enhancing external statistics through new data and historical time series

In its STEC (Services Trade by Enterprise Characteristics) statistics, the OeNB provides detailed information on Austrian companies working in the international trade in services. This enhances the availability of ­official OeNB data on Austria’s external sector. The data promote a better understanding of external trade relations and can help companies improve their economic planning.

In September 2024, the historical time series of external statistics and of financial accounts were revised extensively (external statistics until 2013 and financial accounts until 1995). Such a revision, which also covers the national accounts, takes place every five years, in a coordinated effort together with Eurostat and the ECB. This makes it possible to offer users even longer, consistent and harmonized time series.

Cash continues to be a modern means of payment

By uniting tradition with cutting-edge production and security technologies, cash offers many advantages. Banknotes and coins are easy to use, secure and easily accessible for everyone. Moreover, cash is usually accepted anywhere and independent of external conditions.

Cash stands for independence and freedom of choice. It is an essential basis for social participation and trust in the financial system. Even in today’s increasingly digitalized society, cash is still important. For many people in Austria, it remains an indispensable means of payment.

The OeNB is committed to maintaining cash as an efficient means of payment at the highest technological level. Therefore, the OeNB is involved in all questions around the cash cycle, as well as in the design and production of euro banknotes, at national and international level.

A recent study by the European Central Bank (ECB) confirmed that cash remains a modern means of payment (see: Use of cash by companies in the euro area in 2024 ). In Austria, around 90% of all companies accept cash payment. This number is somewhat higher than the euro area average of 88%.

The OeNB’s strategic goals around cash handling

At the OeNB, we are committed to strengthening the acceptance of cash and providing easy-access cash supply and comprehensive infrastructure. Therefore, we welcome the 2024 agreement between the ­Austrian Association of Municipalities and Austrian banks on the provision of cash across local communities (available in German). This agreement was signed with effect until 2029 to secure widespread cash supply, especially in rural areas.

The OeNB and its money-handling subsidiaries aim at raising awareness for the social function of cash in order to facilitate nondiscriminatory cash payments (see chapter “Our subsidiaries complement the OeNB’s business operations”). To achieve this goal, we rely on intense communication, cooperation and exchange with our partners. We also support EU-wide measures to secure cash as a legal tender. In this way, we ensure an efficient cash cycle in Austria.

The OeNB’s cash-related initiatives and goals are based on a number of studies and analyses. For ­example, we again examined the availability of ATMs in Austria in 2024 (see OeNB Blog , in German). The aim was to ascertain if the distance between people’s homes and their nearest available ATMs had changed since 2021. The results confirm that Austria is still well supplied with ATMs, in comparison to other European countries. This is also reflected in the wide use of cash in Austria.

The new euro banknotes take shape

At the end of January 2025, the Governing Council of the ECB selected possible motifs for the new euro banknotes. The selected shortlist of motifs is based on a proposal by a multidisciplinary advisory group. It reflects the preferences expressed by more than 365,000 Europeans in public surveys held in summer 2023 and in focus groups conducted between December 2021 and March 2022. Two possible themes were selected: “European culture: shared cultural spaces” and “Rivers and birds: resilience in diversity.” Under the theme European culture, iconic European personalities would be presented on the front side of the banknotes. If this theme is chosen, an Austrian will be depicted on the front of the EUR 200 banknote: Bertha von Suttner, the first Nobel Peace Prize laureate. This would be a strong signal for peace and underline the important role of women in Europe.

Following a design competition in 2025, the public will be consulted about its preferences in 2026. Then, the Governing Council of the ECB will take the final decision on the designs and the timeline for the issuance of the new euro banknotes.

Preparing the digital euro: Where are we at?

The digital euro would be the first digital legal tender for the entire euro area. A digital counterpart of euro banknotes and coins, the digital euro would supplement the existing payments landscape with a central bank digital currency. It would increase Europe’s strategic autonomy vis-à-vis non-European payment systems and private crypto assets with payment functions (such as stablecoins).

The OeNB and the other national central banks in the Eurosystem are working with the ECB on preparing the digital euro. The Eurosystem will take a decision on the issuance of a digital euro only once the legal framework has been set up.

More choice, privacy and inclusion for citizens

The digital euro would provide an additional digital payment option and would thus increase freedom of choice when making electronic payments. Citizens could use the digital euro for making convenient, ­secure and low-cost electronic payments throughout the euro area – at their local grocery store, for ­purchases in international online stores or for payments between private users. The digital euro is supposed to offer both online and offline payment functions. Especially if used offline, the digital euro would ­resemble cash payments as closely as possible as high data protection standards are to ensure that users’ privacy is safeguarded in an optimal way.

Retailers could also benefit from the digital euro. They could make use of an additional, cost-effective payment method that is available to all consumers across the euro area. This would be a novelty as, to date, comparable solutions exist only at national or regional level. And there are further advantages: The Eurosystem will not charge any fees for payments using the digital euro. Thus, the digital euro would ­reduce costs for retailers, accelerate payments and increase efficiency.

Payment service providers, such as banks and fintechs, have a crucial role in the envisaged distribution of the digital euro, which can be compared to their role in cash payments today. Moreover, the digital euro infrastructure would offer them a European platform to develop innovative additional services across the euro area. In this way, they could attract new customer groups and create new, attractive business models – e.g. through value-added services and customer loyalty programs. Payment service providers would receive a fair compensation for their services.

To make the digital euro work in day-to-day life, we need to know about the needs and requirements of citizens, retailers and payment service providers. This is why the OeNB regularly engages with representatives of these three groups. The OeNB pays particular attention to the needs of vulnerable groups and people with disabilities, and promotes their financial inclusion.

More innovation, competition and autonomy for the European single market

By implementing the digital euro, Europe would set new standards for digital payments. Consumers would be able to make payments with electronic central bank money in the digital space. Moreover, the digital euro could help significantly raise the efficiency of the European payment landscape and foster innovation. It would counter the high degree of fragmentation we are currently seeing in the European payments sector and it would decrease dependencies on non-European payment service providers. Thus, the digital euro would render the European payment system more resilient, secure and stable. This would benefit the European digital single market and strengthen Europe’s geopolitical independence as well as the strategic autonomy of the European financial sector.

EU and central banks are preparing the legal and technical frameworks

Before the digital euro can become a reality, legal and technical frameworks need to be established. The decision on the legislative proposal by the European Commission will be taken by the Council and the European Parliament, as co-legislators. In the meantime, the ECB and the Eurosystem will be working on the technical implementation.

The digital euro’s impact on financial stability

In an impact analysis, the OeNB assessed possible risks for financial stability related to the introduction of the digital euro. It analyzed the impact of the substitution of bank deposits by digital euro holdings as well as the effects on banks’ liquidity base, income and costs. The impact analysis shows that these ­effects may differ substantially depending on banks’ business models. Systemic risks for financial stability could only arise if people were allowed to hold very large amounts of digital euro, and in certain situations of crisis. From the perspective of financial stability, the main purpose of the digital euro should be its payment function (and not serving as a store of value). Careful design, in particular regarding holding limits, can substantially reduce the risks for financial stability. For this reason, the Eurosystem will pay particular ­attention to financial stability when designing the digital euro.

The OeNB promotes sustainability across all business areas

At the OeNB, we keep an eye on how our activities affect the environment and society. We do this ­because we want to promote sustainable future-oriented development.

According to the United Nations’ 1987 Brundtland Report , sustainable development is “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Sustainability has many different aspects. At the OeNB, different business areas are dedicated to environ­mental, social and governance issues (ESG). They promote ecological and social sustainability and responsible corporate governance. In 2024, we summarized related corporate priorities such as environmental policy and equality in an integrated sustainability strategy . The OeNB’s mission statement also clearly states its commitment to sustainability.

Environmental sustainability – new initiatives and milestones

For more than 25 years, the OeNB has practiced certified environmental management in accordance with the EU’s Eco-Management and Audit Scheme (EMAS). During this time, we managed to reduce energy consumption by more than 30% and paper consumption by more than 90%.

In 2024, we began to install photovoltaic systems in the three buildings that form the OeNB’s main premises in Vienna. This marked another milestone in our climate fitness project (urban heating program). We will use the generated electricity directly for our own electricity needs. In addition, we will continue to source certified green electricity and modernize the thermal insulation of our buildings.

The subsidiaries within the OeNB group also adopted numerous environmental protection measures, most importantly: (a) preparing for comprehensive sustainability reports, (b) implementing photovoltaic projects for the GSA buildings, together with the OeNB’s real estate subsidiaries BLM and IG, and (c) continuing the OEBS’s long-standing environmental and climate measures under EMAS environmental management.

We also implemented the following measures in 2024: We renewed the central ventilation station in our main building, established a connection to district heating in our Innsbruck branch office and expanded the use of LED lighting in one of our Vienna office buildings. In the area of greenhouse gas reduction and sustainability reporting, we included all business areas. In our procurement process, we expanded the range of environmentally friendly products. Also, we extended the use of our pool of electric bicycles. To improve the microclimate and make a small contribution to biodiversity in urban areas, we planted a few trees close to the OeNB’s main building.

Beyond business ecology, we are promoting several other projects with environmental relevance. The mix ranges from moor renaturation and a podcast series about sustainable financing to research projects on the impact of sustainable investment and fundamental research on climate modeling.

Environmental Statement will be published as a publication in its own right from 2025

Over the last few years, the OeNB published its EMAS-compliant Environmental Statement as part of its Annual Report. From 2025 onward, the OeNB will make its Environmental Statement a separate publication again; it will be available on its website.

Green finance: How does the OeNB address environmental and climate issues?

The people responsible for reserve management at the OeNB publish climate-related financial disclosures , which indicate the sustainability of OeNB investments. These disclosures follow a procedure agreed within the Eurosystem.

In the area of banking supervision, the OeNB is contributing to the development of new requirements that will direct more attention to ESG risks. Some of these new requirements have, for example, been enshrined in the European Banking Authority’s “Guidelines on the management of ESG risks.” Banks need to adequately address sustainability risks. Their compliance with this requirement is assessed by European banking supervision and at national level.

One of the core topics for our statistics team in 2024 was the valuation of collateral for monetary policy operations. The aim was to implement methods for considering physical and transition risks. Moreover, to bridge data gaps, an ad hoc reporting system was established at European and national level. Other efforts at European level included work on the further development of ESG indicators and future items to be reported. For the first time, we were involved in the validation of the ECB’s climate change-related indicators – a particularly noteworthy event. This improved the quality of the national indicators and led to a deeper understanding of the underlying methodology.

Our economic analysis specialists continued their event series on the energy transition, promoting a dialogue with well-known international experts in front of a wide audience. The first series of events had included nine panel discussions dedicated to technological aspects such as the role of natural gas, e-fuels, hydrogen or nuclear energy. It was concluded with a report in 2024. Since mid-2024, a second series of events has been looking at economic considerations tied to the energy transition, such as: climate scenarios, dependence on China, carbon pricing and promoting green innovation. Why are we doing this? Because climate policy that is aligned with economic considerations is in the interest of price and financial stability — the OeNB’s core mandate.

Other OeNB publications focused on the optimal carbon price for meeting the EU’s climate goals, the inflation effects of Austria’s carbon pricing, the distributional effects of financial market-oriented and fiscal environmental policy, and the Austrian public’s attitude toward green finance. The OeNB experts in charge also organized a course about green finance for international regulatory authorities and central banks, as well as presentations by a network of climate economists, for example in the context of the Austrian Economic Association. Within the OeNB, our green finance experts manage a regular exchange of information via a dedicated platform and web page.

Turning to internal risk management, we can report that the integration of ESG risks into the risk framework was further advanced. Internal reporting includes selected indicators on transition and physical risks. In the reporting year, we started analyzing dependencies on ecosystem services, i.e. on benefits from nature that serve people’s well-being.

We also conducted a climate stress test for our nonmonetary policy portfolio in 2024. The aim was to simulate the development of key risk indicators and loss potentials in two adverse scenarios compared to development in a baseline scenario. Based on this stress test, we estimated immediate and direct financial consequences for the OeNB. The scenarios used were developed by the Network for Greening the Financial System (NGFS), a voluntary association of central banks and supervisory bodies.

In NGFS working groups, the OeNB is contributing to recommendations and best practices for risk management and responsible investment. At the same time, the OeNB benefits from a lively exchange of knowledge with other central banks.

New impulses for a strong corporate culture and future-proof HR developments

In 2024, we strengthened the OeNB’s image as an attractive employer through various new measures. With a clear strategy and innovative approaches, we made valuable progress in the areas of employee loyalty, health management, skills development and equal treatment.

Staff retention is the new recruitment

As the central bank of the Republic of Austria, the OeNB not only offers interesting tasks to its employees but also attractive working conditions. Reconciling work and family life is particularly important to us. This is one of the reasons why we have a low staff fluctuation rate of 2.8% (see table 1). Still, we strive to regularly provide new impulses: For an expert institution like the OeNB, holding on to tried and trusted employees is more important than ever. Under the heading “staff retention is the new recruitment” we took a number of measures to ensure the long-term commitment of our top-notch experts.

Highlights of our employer branding campaign included in-house photo shoots and video productions. These will feed into the OeNB’s external communication, allowing it to project a modern and authentic image. This is essential for recruitment. We want to set ourselves apart from other employers to attract the interest of suitable candidates.

Our onboarding process for newcomers was ­expanded in 2024. The new process has been ­designed to facilitate contact between new staff members and designated partners in the Human Resources Division beyond the recruitment phase. In the future, OeNB newcomers and their HR partners will exchange feedback on the onboarding process after a few months.

Our position as an attractive employer is also under­pinned by our participation in the “workandfamily” audit program. The measures resulting from the audits help increase staff satisfaction. The reporting year marked the end of a three-year audit period during which we implemented numerous measures, e.g. initiatives to support hybrid forms of working and virtual management, a mentoring program and better incentives for men to take paternity leave. The OeNB was successfully recertified at the end of 2024. This is confirmed by the “workandfamily” certificate awarded by the Federal Minister for Women, Family, Integration and Media for a three-year term. For the first time, we defined the priorities for the new audit period based on a competition inviting ideas from all employees, who were then also encouraged to vote for their favorite ideas.

Health management contributes to long-term performance

Today more than ever, health is a key success factor, both for our employees’ individual performance and for the company as a whole. Active health management is also essential for staff retention.

That is why we further expanded our health services in 2024, with a focus on burnout prevention. We organized an informative health day and numerous vaccination campaigns via our company health center.

Developing new skills: spotlight on artificial intelligence

Growing digitalization and the use of artificial intelligence (AI) pose new challenges in our work life that we need to address through continuous learning. To prepare our staff for these challenges, we expanded our already extensive training offer and put the spotlight on AI topics. We addressed a variety of target groups by developing numerous face-to-face courses and online tutorials. About one-quarter of all OeNB employees have already used at least one of these training opportunities.

Generally speaking, the members of our staff make good use of our broad training offer: In 2024, we recorded 5.5 training days on average per employee.

Implementing the Federal Equal Treatment Act at the OeNB — a look back at the last ten years

2024 marked an important ten-year anniversary: the OeNB had been subject to the Federal Equal Treatment Act since 2014. An extensive program with 19 events highlighted the OeNB’s commitment to equal treatment and diversity in this anniversary year.

Around 39% of OeNB staff are women. Table 2 shows the shares of female employees in expert and management career tracks in 2024.

In the reporting year, important measures for an inclusive workplace with equal opportunities were implemented not only by the OeNB’s equalities officers team, but also by two staff networks (OeNB Women’s Forum and OeNBunt).

Special highlights included: an event organized by the OeNB Women’s Forum on board diversity, which focused on the economic benefits of diversity in governing bodies; a special exhibition that showcased the role of women in more than 200 years of OeNB history (“OeNB-Heldinnen” — OeNB heroines); ­Diversity Day in May, when all staff members were invited to think about the different facets of diversity for a day; the ninth ESCB and SSM meeting on diversity and inclusion, which took place at the OeNB in September; the award ceremony for the research prize bestowed by Pride Biz Austria, which was hosted by the OeNB in November. For the first time, the OeNB had also sponsored a Pride Biz Austria prize — for a research project on the stigmatization of LGBTIQ+ staff and the positive effects of social support at the workplace.

New priorities for compliance and governance

In 2024, the Austrian Freedom of Information Act (Informationsfreiheitsgesetz) was adopted. Most of its provisions will take effect on September 1, 2025. For us, this act is relevant for two reasons: (1) ­because the OeNB exercises public authority functions and (2) because it is an enterprise that is fully state-owned, and as such is audited by the Austrian Court of Audit. In spring 2024, we launched a project to implement the Freedom of Information Act at the OeNB. Following the example of existing information disclosure processes, the scope of the project includes: the creation of information materials for staff members, training initiatives and awareness-raising campaigns; the provision of process charts and IT support in the form of appropriately chosen instruments for handling information requests, providing timely answers and documenting all information disclosure requests that reach the OeNB.

2024: year of artificial intelligence at the OeNB

For a number of years, the OeNB has been building up expertise in artificial intelligence (AI) and machine learning. The broad implications of the ground-breaking innovation leaps recently seen in these areas prompted the OeNB to dedicate 2024 as year of AI to make the entire institution fit for the future by developing a holistic AI concept.

The core element of our year of AI was a multidisciplinary project to identify the potential applications of AI at the OeNB. In the course of this project, we also looked at the special conditions and requirements that need to be considered by a central bank when using AI. Drawing from a host of ideas for AI application, we developed representative prototypes for different business areas and launched first AI applications. This was preceded by a sound legal assessment of these technical innovations and their impact, based on which we created a suitable regulatory framework with a particular focus on compliance and ethics.

To ensure a broad buildup of know-how, we established an AI training program that takes into account different needs depending on pre-existing levels of knowledge. The activities offered range from basic training for users to specialized training courses for developers and data scientists. The AI project was accompanied by regular easy-access communication and an exchange of information at international ­level. Our year of AI made it possible to prepare the OeNB for the opportunities and challenges posed by AI in a structured and forward-looking manner.

Financial education: new offer and research results

In 2024, we further expanded our financial education offer and reached out to new target groups in ­cooperation with national and international partners. With new research results on financial education, we are laying a solid foundation for advancing financial literacy in Austria.

More education opportunities for younger children and teachers

In Austria, financial education opportunities in the pre-primary sector remain few and far between. In a one-year pilot project (“Geldwert – Wertvoll”), we therefore tested and evaluated materials on financial, consumer and values education in kindergartens. The education offer is now being developed further based on the evaluation results. We were also able to expand our offer for school children aged 6 to 15 and teachers. The new learning app Meiki (available in German) helps 9- to 12-year-olds acquire economic competences and think about saving in an easy playful manner. It has been certified with a quality label from the Ministry of Education. Our commitment to the Austrian Foundation for Economic Education again showed tangible results, as the second year of a pilot program exploring in-depth economic education at lower secondary school was successfully concluded. This pilot program targets students aged about 10 to 14 and will run for four years in total.

New digital learning opportunities for broad audiences

In 2024, a digital one-stop shop for financial education was launched: Finanznavi . The online platform was developed as part of the national financial literacy strategy together with the Federal Ministry of ­Finance. We also relaunched the OeNB’s financial education website to provide even easier access to all financial education opportunities offered by the OeNB. On this website, we also offer game-based ­learning about inflation and capital markets with the newly created application FinCity Adventures . It can be used both in class and at home for individual learning (in German). To make financial education even more ­accessible, we now also offer selected financial education videos in sign language.

New findings through research and evaluation

In 2024, the first monitoring report for the national financial literacy strategy was published in cooperation with MCI – The Entrepreneurial School. It gives an overview of the content, formats, target groups and participants reached with over 130 activities and initiatives. In the context of the OECD/INFE survey of financial literacy among adults in Austria, we were able to show that the Austrian population has a high level of financial literacy by international standards.

The published findings also show that there is potential for improvement. For example, we need target group-oriented measures to close the gender gap in the young population and to strengthen young people’s long-term orientation when it comes to financial issues. We also see that people’s trust in the OeNB and its task fulfillment was strengthened in 2024. To inform researchers, policymakers and educators about the current state of research on financial literacy and education, we created the OeNB Financial Literacy Evaluation Series . The series deals with theoretical, practical and methodological aspects concerning ­financial literacy and aims to spark and support new research and evaluation in the field of financial education.

“Safe with the euro” — successful info campaign continued

For more than two decades, the euro has been our companion in all payment situations. Whether in shops, on the internet or abroad — whenever we exchange money with other people, we are always: safe with the euro. From July to September 2024 the OeNB ran an information campaign under this motto to extensively spread this message via its social media channels and website as well as through advertising in the public space and in print media. In addition, the info hub on secure payments has been expanded significantly on the OeNB’s website. On this hub, we offer a folder and a podcast with in-depth information on secure payments (in German).

Our social media community grew vigorously in 2024, bringing the number of our followers to 51,000. A total increase of 38% was achieved across all channels (with the largest increases on LinkedIn and YouTube). For the first time, we launched cooperation projects with influencers on the Meta channels Instagram and Facebook, which allowed us to reach out to around 190,000 people with financial education topics. In 2024, we published a total of eight podcasts, which we all produced in-house again. We also carried out several external and internal communication activities to accompany the tenth anniversary of European banking supervision (embodied by the Single Supervisory Mechanism), the launch of the OeNB’s new financial education website as well as the multiyear digital euro project. For many years, the OeNB has organized a series of short talks for its staff under the heading: OeNB – discover how it works (“OeNB einfach erklärt”). In 2024, we again offered 18 talks that each reached about 200 staff members online. In 2024, our extensive range of publications was expanded to include the two new series: OeNB Bulletin, which is an outlet for economic studies, and the OeNB Financial Literacy Evaluation Series, which presents financial education topics. The OeNB again hosted a townhall meeting with the general public under the motto: Let’s talk about the euro (“Red ma übern Euro”).

The OeNB monitors compliance with the Sanctions Act

In 2024, the OeNB expanded and intensified its statutory supervisory role in the area of financial sanctions. A total of 45 supervisory measures were carried out, including 21 on-site inspections as well as company visits (targeted short inspections of credit institutions) and meetings with bank management. On-site ­inspections are the most comprehensive form of supervisory measures. As a rule, they take place on the premises of the inspected institution and serve the purpose of evaluating all sanctions-related processes, measures and IT systems. In addition, the management and compliance officers of 19 Austrian credit ­institutions were invited to the OeNB to present their sanctions-related compliance systems and answer related questions. The legal basis for these supervisory measures is the Sanctions Act (Sanktionengesetz) of 2010. Under the Sanctions Act, the OeNB is responsible for monitoring compliance with ­financial ­sanctions by credit, financial and payment institutions.

Based on the supervisory measures mentioned above, around 10% of the licensed credit, financial and payment institutions could be examined in terms of their compliance with sanctions. The inspections broadly confirm that Austrian credit institutions have adjusted their processes to adequately address sanctions. In addition, the extensive EU sanctions packages have prompted supervised institutions to strengthen and intensify their sanctioning-related compliance measures.

The OeNB strives to provide comprehensive support to credit, financial and payment institutions in strengthening their measures for preventing a circumvention of sanctions. In this way, we want to contribute to ensuring robust and effective compliance with sanctions and to avoiding potential violations of the law or a circumvention of sanctions. The focus on possible prevention measures in this area remains essential.

On November 20, 2024, the Austrian parliament passed the FATF Audit Adjustment Act 2024 (FATF-­Prüfungsanpassungsgesetz 2024). The centerpiece of this legislative package is the new Sanctions Act 2024, including its accompanying measures. The law transfers competences in the area of financial sanctions. From 2026 onward, the Austrian Financial Market Authority (FMA), instead of the OeNB, will be responsible for monitoring compliance with international sanctions on the part of credit, financial and payment institutions licensed in Austria. The group of supervised companies will change as well. It will be expanded to include insurance companies, crypto asset service providers and investment firms. Supervisory powers will be more extensive under the new regime. The OeNB will remain the competent authority for monitoring compliance with sanctions until December 31, 2025. Already prior to this date, the OeNB can ask the FMA to carry out on-site inspections related to sanctions.

Expanding the OeNB’s approach to enterprise risk management

The OeNB relies on systematic enterprise risk management, which is continuously developed in line with our strategic objectives. The aim is to gradually improve and harmonize the efficiency and maturity of the OeNB’s individual risk management systems. These cover: compliance risk management, financial risk management, information security risk management, operational risk management, project risk management and affiliate risk management.

In 2024, our main focus was on establishing a common IT system for managing and controlling the OeNB’s nonfinancial risks. By implementing the new tool IKARUS at the beginning of December 2024, the OeNB was able to raise the degree of automation and standardization. In 2025, we will focus on ­expanding the functionalities of the tool and further advancing the enterprise risk management methodology and its maturity level.

New approach toward financial risk management

The Governing Board adopted significant changes to its risk management concept in 2024, which will take effect in 2025.

The Governing Board will continue to prepare an annual risk appetite statement that expresses the extent to which the OeNB can accept financial risks when investing its own funds. The risk appetite statement is a starting point for the strategic orientation of investment and the basis for the design of the risk framework (e.g. limits).

The new risk management concept changes the foundation on which the Governing Board bases and justifies its risk appetite statement. In the past, the OeNB’s potential risk appetite has been limited by its risk coverage capital. While risk coverage capital remains an important variable, additional important factors will be taken into consideration in the future. Together, they represent the OeNB’s risk-bearing capacity. The additional factors to be considered will include: the OeNB’s reputation, infrastructure and expert know-how.

Within the limits of risk-bearing capacity, target-oriented risk appetite is the key factor in determining the risk appetite statement. This means that we are willing to take risks that are necessary to achieve our objectives, while we will avoid risks that do not serve them. In this way, risk management can support the achievement of the OeNB’s objectives while protecting it against excessive risks.

The OeNB promotes science, business development, the arts and culture in Austria

The OeNB Anniversary Fund for the Promotion of Scientific Research and Teaching was set up to help ensure a level playing field for basic research projects on central bank topics. Through our funding, we help make economic research in Austria more competitive and more attractive.

Guided by these strategic considerations, the Governing Board of the OeNB approved funding totaling nearly EUR 6 million for 26 projects in 2024. The University of Innsbruck received funding for four projects (EUR 860,000), making it the largest institutional beneficiary in 2024.

Supporting economic research in Austria

Independent, high-quality empirical economic research generates valuable input for policymaking and keeps the public informed about the impact of economic policy measures. The wide range of economic challenges we face today underscore the relevance of economic research as a major public good. At the OeNB, we acknowledge this notion and, by providing financial support, make an essential contribution to keeping institutional work independent of politics and industry.

In the fall of 2021, we therefore thoroughly redesigned the OeNB’s core funding program for Austrian economic research institutions. In 2024, the OeNB’s new support program provided the following subsidies to domestic economic research institutions:

• Austrian Institute of Economic Research (WIFO) EUR 2,165,000
• Institute for Advanced Studies (IHS) EUR 1,370,000
• The Vienna Institute for International Economic Studies (wiiw) EUR 715,000
• Complexity Science Hub Vienna (CSH) EUR 285,000

Promoting the arts and culture

In 2024, our commitment to the arts and culture received new impetus from the organizational pooling of the OeNB’s collections and the Bank History Archives in a new Arts and Culture Unit.

The art collection was expanded by purchases of works by Ernst Caramelle, Tobias Pils, Flora Hauser and Soli Kiani. With works from our collection, we were able to support several exhibitions in Austria and abroad, including a retrospective on Rudolf Wacker at the Leopold Museum and the first showing of Martha Jungwirth at the Guggenheim Museum Bilbao.

The Money Museum is represented in museums in Austria and abroad with several objects on loan, for example in the “Money Talks” exhibition at the Ashmolean Museum in Oxford or “CASH. The value of money” at the Vienna Museum of Science and Technology.

The OeNB’s Money Museum also provides free-of-charge tours and workshops, sharing knowledge about the history of money and the Austrian central bank with a broad audience. To reach even more people, the OeNB plans to modernize its Money Museum.

In our Bank History Archives, we evaluated the merits of a digitalization initiative. In the future, we want to make certain items available online.

Our archives served as the main source informing research on historical blueprints and construction files for a project of the University of Innsbruck that is being subsidized by the OeNB Anniversary Fund. The research project looks into the construction activities of the Austrian central bank in the period from 1878 to 1938.

In 2024, the OeNB added an important 18th century violoncello to its collection of historical string instruments. Like the other instruments in the collection, this cello will be made available to a musician free of charge: This partnership makes it possible to preserve this unique cultural heritage and the precious instruments’ distinct sound for future generations. In addition, cooperation with the Vienna State Opera makes it possible to promote musical life in Austria at one of its central venues.

Our subsidiaries complement the OeNB’s business operations

Together with its subsidiaries Münze Österreich AG , Oesterreichische Banknoten- und Sicherheitsdruck GmbH (OEBS) and GELDSERVICE AUSTRIA (GSA) , the OeNB ensures smooth and secure cash payments in Austria – now and in the future. We are committed to providing high-quality services in a secure, ­sustainable and environmentally friendly way.

Münze Österreich AG is the official mint of the Republic of Austria. Its exclusive right to mint and issue coins in Austria is laid down in the Coinage Act (Scheidemünzengesetz). As one of the world leaders in coin production, it not only produces high-quality coins but also raises awareness for the social function of cash. In 2024, Münze Österreich AG issued 1.95 billion euro coins with a value of EUR 816 million. It continues to develop new, innovative product lines such as collector coins and precious metal investment products. The Vienna Philharmonic gold coin, for example, which was first minted in 1989, ranks among the most important international investment products. It has been key to the success story of Münze ­Österreich AG.

The OEBS conducts R&D in the area of banknote production and produces banknotes for the Eurosystem. On behalf of the OeNB, it prints the share of euro banknotes determined annually by the ECB. In 2024, for example, the OEBS produced more than a hundred million EUR 20 banknotes (107.51 million). The OEBS also cooperates closely with other Eurosystem central banks and produces banknotes for them. For international customers, the OEBS also produces foreign currency banknotes. In recent years, the company has significantly added to its original role as banknote printing works, turning into an international center of expertise that offers innovation, sustainability and solutions.

GSA is Austria’s leading service provider for cash handling and cash logistics. It caters to the OeNB, banks, payment service providers and retailers. With its modern cash centers, GSA ensures that high-quality cash is available wherever needed.

Another OeNB subsidiary, the OeNPAY Financial Innovation HUB GmbH (OeNPAY) , has promoted innovation in the financial sector since 2021. It is committed to implementing digital payments across Austria to ensure easy, stable and secure payments for all. Being a wholly owned subsidiary of the OeNB, the OeNPAY has taken care to adopt a neutral market position.

The real estate investment group IG Immobilien manages the OeNB’s real estate investments. It aims at sustainably improving the value of OeNB real estate holdings and optimizes the current earnings on the individual properties.

BLM Betriebs-Liegenschafts-Management GmbH provides the business premises for the OeNB and its subsidiaries.

On their websites, the OeNB’s subsidiaries publish annual reports pursuant to the Federal Public ­Corporate Governance Code 2017. Table 3 provides an overview of the OeNB’s direct and indirect equity interests.

Direct and indirect equity interests

Table 3 shows the OeNB’s direct and indirect equity interests in line with Article 68 paragraph 4 Nationalbank Act.

Ownership structure and decision-making bodies

The OeNB is a stock corporation that operates subject to a number of special rules. These are derived from the OeNB’s special status as a central bank and are laid down in the Federal Act on the Oesterreichische Nationalbank 1984 (Nationalbank Act). The OeNB’s nominal capital totals EUR 12 million. Since July 2010 we have had only one shareholder: the Austrian central government.

The General Meeting

The Republic of Austria is the sole shareholder of the OeNB. The shareholder rights are exercised by the Federal Minister of Finance at the regular General Meeting. The tasks of the General Meeting include approving the annual financial statements, deciding on the appropriation of the profit reported in the annual financial statements, including the dividend to be distributed to the sole shareholder, and granting discharge to the members of the General Council and of the Governing Board of the OeNB.

The OeNB’s General Council

Tasks

The General Council is the supervisory board of the OeNB. It advises the Governing Board on matters relating to management and monetary policy and oversees those operations which do not fall within the remit of the European System of Central Banks (ESCB). The General Council usually meets on a monthly basis. The General Council and the Governing Board hold a joint meeting at least once a quarter. The powers of the General Council are governed in particular by Articles 20 to 31 Nationalbank Act.

General Council approval is required for a number of management decisions, e.g. for starting and discontinuing lines of business, establishing and closing down branch offices, and acquiring and selling equity interests and real property. Also, the General Council must approve appointments of members of supervisory boards and executive bodies of companies in which the OeNB is a shareholder. Appointments of the second executive tier of the OeNB itself must likewise be approved by the General Council.

Moreover, the General Council has the exclusive right of decision on e.g. submitting to the Austrian federal government a short list of three candidates for appointments to the OeNB’s Governing Board by the Federal President, defining general operational principles in matters outside the remit of the ESCB, approving the annual accounts (financial statements) for submission to the General Meeting, and approving the cost account and investment plan for the next financial year.

Composition

The General Council consists of the President, the Vice President and eight other members. General Council members are appointed by the federal government for a term of five years and may be reappointed.

Personnel changes

On March 5, 2025, the terms of office of two members, Erwin Hameseder and Susanne Riess-Hahn, expired. At the editorial close of this report, the federal government had not yet decided on appointments or reap­pointments in accordance with Article 23 paragraph 1 Nationalbank Act.

Alfred Lejsek decided to resign as Deputy State Commissioner with effect from May 31, 2024. To replace him as Deputy State Commissioner, the Federal Minister of Finance appointed Nadine Wiedermann-­Ondrej with effect from June 1, 2024.

In the inaugural meeting of the Central Staff Council on October 3, 2024, Alfred Stiglbauer was elected Deputy Chair with effect from October 3, 2024, replacing Christian Schrödinger in this function. Alfred Stiglbauer is now the deputy staff representative to the General Council pursuant to Article 22 paragraph 5 Nationalbank Act.

Members of the OeNB’s General Council

As on December 31, 2024

The OeNB’s Governing Board

The Governing Board is responsible for the overall running of the OeNB and for conducting the business of the OeNB. In pursuing the objectives and tasks of the ESCB, the Governing Board acts in accordance with the guidelines and instructions of the ECB.

The Governing Board consists of the OeNB’s Governor and Vice Governor and two other members, all of whom are appointed by the Federal President acting on a proposal from the federal government. ­Governing Board members are appointed for a term of six years and may be reappointed. The Governor of the OeNB is a member of the Governing Council of the ECB and of the General Council of the ECB. In performing these functions, the Governor and the Governor’s deputy are neither bound by the decisions of the OeNB’s Governing Board nor by those of the OeNB’s General Council, nor are they subject to any other instructions. See www.oenb.at for additional information about the OeNB’s Governing Board.

From left to right: Executive Director Eduard Schock, OeNB Governor Robert Holzmann,
Vice Governor Edeltraud Stiftinger, Executive Director Thomas Steiner

Personnel changes

As the contracts of the members of the current Governing Board were due to expire in 2025 (Governor Robert Holzmann: August 31, 2025; Vice Governor Gottfried Haber: July 10, 2025; Executive Director Eduard Schock: July 10, 2025; Executive Director Thomas Steiner: April 30, 2025) and based on the Nationalbank Act and the Austrian Public Appointments Act (Stellenbesetzungsgesetz), the General Council decided, in its meeting of March 18, 2024, to advertise the upcoming vacancies on the Governing Board.

Vice Governor Haber declared that he would withdraw before the end of his full term, i.e. with effect from November 30, 2024; therefore, the General Council decided, in its meeting of June 24, 2024, that the term of office for the new Vice Governor was to start earlier as well, i.e. on December 1, 2024. Immediately after this meeting, the General Council submitted a proposal to the Federal Government, putting forward three names for each Governing Board position to be filled. Based on this proposal, the Federal Government, in turn, decided on its own proposal and presented it to Federal President Alexander Van der Bellen on August 6, 2024. On September 5, 2024, President Van der Bellen decided on the following appointments in line with Article 33 paragraph 2 Nationalbank Act:

• Martin Kocher as Governor with effect from September 1, 2025;
• Edeltraud Stiftinger as Vice Governor with effect from December 1, 2024;
• Thomas Steiner as member of the Governing Board with effect from May 1, 2025; and
• Josef Meichenitsch as member of the Governing Board with effect from July 11, 2025.

Each member was appointed for a term of office of six years.

Rules of procedure

In its meeting of October 18, 2024, the General Council adopted the new rules of procedure for the ­Governing Board, including changes in the allocation of Executive Directorates. These took effect on ­December 1, 2024. Vice Governor Edeltraud Stiftinger now heads the Executive Directorate Treasury, Accounting and Statistics and Executive Director Thomas Steiner the Executive Directorate Financial ­Stability and Banking Supervision. The Executive Directorates of Governor Robert Holzmann and Executive Director Eduard Schock were not affected by the changes.

Organization chart