The purpose of this article is to disseminate the main results of the program “Ageing
and Its Implications for Banks and Bank Strategy” of the Oesterreichische Nationalbank’s
(OeNB’s) Financial Markets Analysis and Surveillance Division and to draw conclusions
about the implications of aging for financial stability. The first question that
arises is whether demographic change is relevant for banks and financial stability
at all. The paper answers this question in the affirmative and goes on to analyze
the impact of demographic change on the environment in which banks operate, i.e.
on economic growth, interest rates, and residential real estate markets, and on the
level and composition of household demand for bank services and products. The article
summarizes how banks might adapt their strategies in response to demographic change.
Finally, it draws conclusions about the potential implications for financial stability.