Following its publication in the Federal Law Gazette (BGBl; Bundesgesetzblatt) today, the amendment issued by the Austrian Financial Market Authority (FMA) of the Regulation on Real Estate Financing Measures in Credit Institutions (KIM-V; Kreditinstitute-Immobilienfinanzierungsmaßnahmen-Verordnung) has entered into legal force after a thorough public consultation process. In the amendment, the four separate exemption buckets that were based on specific ratios have been merged into a single institution-specific exemption bucket for 20% of new lending volume. In doing so, the FMA follows a recommendation passed by the Austrian Financial Market Stability Board (FMSG; Finanzmarkstabilitätsgremium), at its meeting on 12 March 2024 for “simplifying the administration of the exemption buckets” that ordered it to simplify the standards that it had set. In its recommendation, the FMSG states that “Sustainable lending in accordance with the KIM-V criteria remains the norm”. The new rule applies from 1 July 2024 to newly concluded private residential real estate financing arrangements.
“The aim of the FMSG’s recommendations is to limit the systemic risks for financial market stability from real estate financing arrangements using debt instruments”, remarked the FMA’s Executive Directors, Helmut Ettl and Eduard Müller: “Our ongoing monitoring has shown that these measures are effective, and that now when lending that the borrower’s ability to repay the loan is the primary consideration, rather than the mortgage collateralisation of the loan.“
The amended version of the KIM-V can be found on the FMA website on the following page: www.fma.gv.at/en/national/fma-regulations/.
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson):
+43 0 676 88249516
+43 (0)1 249 59 – 6006