Germany's Federal Financial Supervisory Authority (BaFin) issued a general administrative order recognising and requiring the reciprocal application of the sectoral systemic risk buffer set by Austria’s Financial Market Authority. The measure applies a 1.0% systemic risk buffer to relevant risk exposures located in Austria to non-financial corporations in the construction and real estate sector, excluding non-profit housing associations, and applies on a solo, sub-consolidated and consolidated basis. The scope covers exposures to corporates active in NACE F41 (construction of buildings), NACE F43 (specialised construction activities) and NACE L68 (real estate activities). The requirement applies to institutions and groups within scope only where the defined Austrian exposures exceed EUR 100 million per institution, assessed at solo, sub-consolidated and consolidated level, including exposures held via branches, direct cross-border lending and subsidiaries. BaFin set the order to be deemed notified the day after public announcement and to enter into force one month after public announcement, with an explicit right to withdraw it in whole or in part with future effect; it also maintained the EUR 100 million threshold and the one-month implementation period following a hearing conducted from 21 January 2026 to 5 February 2026. An objection to the order can be filed within one month after notification. BaFin also linked its ongoing review to Austria’s periodic review of the underlying buffer, which must take place at least every two years.
BaFin 2026-02-25
Germany's Federal Financial Supervisory Authority orders reciprocal application of Austria’s 1% sectoral systemic risk buffer for Austrian construction and real estate exposures above EUR 100 million
BaFin has issued a general administrative order recognising and reciprocally applying Austria’s 1.0% sectoral systemic risk buffer to relevant risk exposures in Austria to non-financial corporations in the construction and real estate sector, excluding non-profit housing associations. The buffer applies on a solo and consolidated basis to institutions and groups whose defined Austrian exposures in NACE F41, NACE F43 and NACE L68 exceed EUR 100 million, including via branches and direct cross-border lending. BaFin may withdraw the order with future effect and will review it in line with Austria’s periodic review of the buffer.