The Austrian Financial Market Authority (FMA) today instructed Austria’s systemically important banks to increase their capital buffers by a total of between 0.25 to 0.5 percentage points by way of an amendment to the Capital Buffer Regulation 2021 (KP-V 2021; Kapitalpuffer-Verordnung 2021). In doing so, it is implementing a recommendation by the Financial Market Stability Board (FSMB) and in this way addresses “the increased systemic risks, that result from additional uncertainties such as Russia’s invasion of Ukraine, increased energy prices and high inflation.” Furthermore, the capital base of Austrian banks remains lower than average in comparison with Europe as a whole. The specific requirements are set out individually for each institution in the amended Regulation, with regard to the systemic risk buffer (SyRB) and the buffer for systemically important institutions (OSII buffer), and also differentiate between the unconsolidated and consolidated situations. The buffers are to be built-up gradually until the end of 2023 in accordance with the individual levels set.
“Banks being well capitalised increases their ability to be able to withstand any losses, and thereby increases their stability and resilience. In times of high economic uncertainty, this is particularly important,” remarked the FMA’s Executive Directors, Helmut Ettl and Eduard Müller: “In addition, an adequate capital base is a material condition for maintaining the Austrian banking system’s very good rating even in difficult times, and by doing so to guarantee comparatively low refinancing costs.” Moreover, significant effects on the supply of credit are not to be expected in light of past experiences regarding decisions – both at national and international level.
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43 (0)676 88 249 516
+43 (0)1 249 59 – 6006