Substantial changes in the business environment as well as the (now finalised)new capital requirements directives prompted the Oesterreichische Nationalbank (OeNB) and the Financial Market Authority (FMA) to co-operate in publishing a series of guidelines on Basel II-relevant topics (since 2004). The publications aim to develop mutual understanding between regulatory authorities and banks with regard to the upcoming changes in banking.
It has to be emphasised that the guidelines do not constitute a legally binding FMA interpretation but a service to credit institutions. The guidelines are meant to provide a general overview of the individual topics and to outline the current state of the art. They are geared towards international developments in the banking business and aim to provide examples of best practice. These guidelines are meant to provide a first orientation so that institutions may choose which element is suitable for certain business activities, to examine their internal processes and systems from a critical perspective, and to detect and exploit possible room for improvement.
The guidelines do not create any legal rights or obligations or modify or supersede any statutory laws and regulations in force. The guidelines reflect the regulatory expectations of the competent authority with regard to the topic at hand. Note: After implementation of Basel III, the guidelines will be successively revised or may become inapplicable given binding technical standards or EBA guidelines.
This guideline is designed to assist practitioners in the implementation of an ICAAP. In this context, the selection and suitability of methods depends heavily on the complexity and scale of each individual institution's business activities. In this guideline, these circumstances are emphasized specifically in line with the principle of proportionality.
The "Guidelines on the Management of Operational Risk" are intended to assist banks in the necessary adaptation of systems and processes in the course of implementing the Basel II framework. The guidelines are geared towards international developments in the banking business and aim to provide examples of best practice.
This guideline deals with the currently enhanced reorganisation of credit approval processes and the corresponding organisational structures in many credit institutions. In this context, the publication is designed to serve as a sample guideline for assessing existing processes and credit risk management and to provide possible directions for the future design of these processes.
The objective of the guideline "Best Practices in Risk Management for Securitized Products" is to give a fundamental overview of securitisation. Furthermore, the publication intends to provide more experienced readers with practically relevant information and guidance for the proper design of risk management mechanisms in securitisation.
The volume "Rating Models and Validation" is intended to help those credit institutions which plan to use an IRB approach (Internal Ratings Based approach) as well as those banks which aim to use their own PD, LGD and/or EAD estimates in order to improve assessments of their risk situation. Therefore, the guidelines describe the measures necessary in order to develop internal estimation procedures as efficiently as possible.