At its 49th meeting, Austria's Financial Market Stability Board reviewed structural systemic risks and left its recommendation on the countercyclical capital buffer unchanged, advising the Austria Financial Market Authority to keep the buffer at 0% of domestic risk-weighted assets. The board said indicators do not point to elevated financial cycle risks. It also discussed the effects of the sectoral systemic risk buffer on commercial real estate lending, residential mortgage underwriting after the expiry of the relevant regulation, and risks linked to investment funds and private credit. On structural risks, the board examined the basis for the systemic risk buffer and the buffer for systemically important institutions, with the specific calibration of both buffers scheduled for autumn 2026. The Oesterreichische Nationalbank found that the sectoral systemic risk buffer had not affected either lending volumes or interest rates, while increasing resilience without constraining financing activity. In residential mortgage lending, the share of loans outside the board's criteria rose moderately after the regulation expired but remained below 20% of new lending, and the trend will continue to be monitored. Private credit is growing internationally but remains small in Austria, with no systemic risk currently arising from direct exposures. The Austria Financial Market Authority and the Oesterreichische Nationalbank are working to improve the data available on the segment. The board also noted that geopolitical developments are increasing uncertainty and affecting growth, inflation and interest rates. It said cautious risk management and adequate provisioning therefore remain important.
Austria Financial Market Authority2026-06-26
Austria Financial Market Stability Board keeps countercyclical capital buffer recommendation at 0% and targets autumn 2026 for structural buffer calibration
Austria's Financial Market Stability Board kept its recommendation for the countercyclical capital buffer unchanged at 0% of domestic risk-weighted assets, citing no sign of elevated financial cycle risks. It plans to set the levels of the systemic risk buffer and the buffer for systemically important institutions in autumn 2026. The board also said the commercial real estate sectoral systemic risk buffer has not reduced lending activity, while residential mortgage lending outside its criteria remains below 20% of new loans.