In this thesis, which is named "Banking in the Republic of Austria", author seeks to explore the functioning, strengths and weaknesses of the system through an analysis of the situation in Austrian banks from 1990. to the present. The banking system is part of the financial system and has an important impact on the functioning of the economy as a whole. The central financial institution in the Republic of Austria is the Nat ional Bank of Austria, which is responsible for the Austrian banking system, 117 banks and their branches. From the end of the last century until today, the Austrian banking system has undergone a number of changes as well as the global economic crisis and is currently affected by the COVID-19 pandemic, a market risk that has a major impact on global institutions and companies. Analyzing the state of the banking sector, it can be seen that it indicates a positive direction. Austria has one of the densest networks of banking branches in Europe. The Austrian banking sector is recording positive business results in 2019. Real estate lending has an upward trajectory, while bank lending is declining in a low percentage, lending to small and medium -sized enterprises is increasing and the total assets of all analyzed banks increased in 2019 compared to the year before.