One of the last and most prominent open issues on the agenda of the FSAP is the proposal of a new capital adequacy directive to implement the New Basel Capital Accord (Basel II) in the banking sector.
Basel II is regarded a necessary instrument to meet the fundamental changes in the banking industry, which includes the emergence of new financial products and advances in risk management practices. Basel II aims to enhance the stability of the financial system via more risk-sensitive capital requirements. Austrian banks are considered to be well informed of, and prepared for, the changes induced by Basel II.