The Austrian Financial Market Authority (FMA) today approved the conversion of “KA Finanz AG” into a wind-down entity pursuant to Article 162 para. 1 of the Bank Recovery and Resolution Act (BaSAG; Banken-Sanierungs- und Abwicklungsgesetz) which to date had held a banking licence. The licence that had been granted in accordance with the Austrian Banking Act (BWG; Bankwesengesetz) for the provision of banking business thereby ceases to exist. KA Finanz AG was founded in 2009 following its demerger from the former Kommunalkredit Austria AG, and is required to conduct the structured wind-down of its non-strategic loans, securities and CDS portfolio in accordance with the restructuring plan approved by the European Commission. Since the remainder of Kommunalkredit Austria AG was able to be sold in the meantime, and in light of the progress made in relation to portfolio reduction as well as a shortening of the timeframe for the wind-down to ten years, the conversion into an wind-down entity was authorised, which leads to considerable cost savings.
Consequently, following the enormous progress made in the resolution of HETA Asset Management, the wind-down entity of the Hypo Alpe Adria Group under the European Bank Recovery and Resolution Directive (BRRD) as well as the successful private sector resolution of IMMIGON, the former ÖVAG AG, the orderly resolution of the third Austrian bank, which fell into existential difficulties during the Global Financial Crisis, is now in its final phase. “As these three cases show, also conferring the role of national resolution authority on the Austrian Financial Market Authority (FMA) has proven to be an efficient and efficient solution,” the FMA’s Executive Board, Helmut Ettl and Klaus Kumpfmüller remarked. “The resolution tools made available to the FMA – resolution under European law in accordance with the BRRD, resolution under national law under BaSAG as well as private sector resolution allowed tailored solutions to allow the withdrawal from the market of failed banks in an orderly manner, without causing a shock to financial market stability.”
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-6006
+43/(0)676/882 49 516