The Federal Financial Supervisory Authority has launched a consultation on increasing its reciprocal application of Austria’s sectoral systemic risk buffer for defined construction and real estate exposures from 1% to 2%, followed by a rise to 3.5% on July 1, 2027. If adopted, the 2% rate would take effect one month after publication of the final order, extending BaFin’s February 2026 recognition of the original 1% buffer. The measure would apply to covered German institutions and groups whose relevant Austrian exposures exceed EUR 100 million on a solo, sub-consolidated or consolidated basis. It covers exposures to nonfinancial corporations, excluding nonprofit housing associations, in specified construction and real estate sectors. Consolidated threshold assessments would include exposures held through branches, direct cross-border lending and subsidiaries. The proposal follows Austria’s decision to increase the buffer after concluding that 1% was insufficient to cover identified commercial real estate risks and that changes under the Capital Requirements Regulation had only a limited effect on exposures and capital requirements. It also reflects the European Systemic Risk Board’s recommendation that European Economic Area authorities reciprocate the higher rates.
2026-09-14BaFin
Germany’s Federal Financial Supervisory Authority consults on raising reciprocal Austrian real estate risk buffer to 2%, then 3.5%
The Federal Financial Supervisory Authority is consulting on raising the reciprocal Austrian sectoral systemic risk buffer from 1% to 2%, then to 3.5% from July 1, 2027. The measure would cover defined Austrian construction and real estate exposures above EUR 100 million on a solo, sub-consolidated or consolidated basis.