The newly established Financial Market Stability Board (FMSB) assumed its duties on 8 September 2014. Its purpose is to strengthen collaboration in macroprudential issues and to support financial market stability. The board’s inaugural meeting was attended by representatives of the Federal Ministry of Finance (BMF), the Fiscal Advisory Council, the Financial Market Authority (FMA) and the Oesterreichische Nationalbank (OeNB). The FMSB is scheduled to meet four times a year.
The purpose of macroprudential supervision is to identify and analyse in advance any risks to the stability of Austria’s financial system. In addition to cyclical and structural risks, such may include fundamental issues relating to incentive problems in the financial system. Specific instruments are available to macroprudential supervision as a means of counteracting any potential threats to the stability of the financial system. It may for example require a bank from which a risk of serious disruption to the financial system emanates to maintain additional capital buffers. The creation of macroprudential supervision is a response to a timely and relevant lesson learned from the financial crisis.
The FMSB has been established as a central decision-making body for the purpose of implementing macroprudential supervision in Austria. Based on the expertise provided by the member institutions, the FMSB reviews issues of relevance to financial market stability, and can make recommendations to the FMA or issue risk warnings.
The Chairperson of the FMSB is Alfred Lejsek, head of the Financial Markets Directorate at the BMF; Alfred Katterl, head of the General Economic Policy Department, was appointed Vice-Chairperson. Beate Schaffer and Peter Part serve as their deputy members. The Fiscal Advisory Council’s President, Bernhard Felderer, and Elisabeth Springler represent that institution in the FMSB. Their deputies are Ulrich Schuh and Edith Kitzmantel. FMA Executive Director Klaus Kumpfmüller represents the FMA, with Executive Director Helmut Ettl serving as substitute member. OeNB Vice-Governor Andreas Ittner and, as deputy, Director Philip Reading were appointed as members by that institution.