Austria Financial Market Authority published an update from the Financial Market Stability Board’s 45th meeting, confirming that the Countercyclical Capital Buffer (CCyB) should remain at 0% and concluding that there are currently no systemic risks from the leveraged financing of alternative investment funds in Austria. From the 46th meeting onward, the Board will apply a new methodology for assessing cyclical risks, which would also result in a CCyB of 0%. The Board also highlighted that real estate funds continue to show a high liquidity incongruence compared with the European Union, pointed to the 2021 legal amendment introducing a 12-month notice period for terminations, and reiterated the Financial Market Authority and Oesterreichische Nationalbank view that a “hurdle rate” would undermine the objective of that amendment. The Board’s recommendation on the CCyB (FMSG/2/2025) is available on the Board’s website (German only).
Austria Financial Market Authority 2025-06-05
Austria Financial Market Authority publishes Financial Market Stability Board decision to keep the countercyclical capital buffer at 0% and move to a new cyclical risk methodology
The Austria Financial Market Authority reported from the Financial Market Stability Board's 45th meeting that the Countercyclical Capital Buffer (CCyB) will remain at 0%, with no systemic risks identified from leveraged financing of alternative investment funds. A new methodology for assessing cyclical risks will be applied from the 46th meeting. The Board noted high liquidity incongruence in real estate funds and reiterated concerns that a "hurdle rate" could undermine the 2021 legal amendment's objectives.