Macroprudential policy strategy reflects new instruments

The FMSB evaluated and adjusted the macroprudential policy strategy for Austria to incorporate the instruments that the legislators had decided on in summer 2017. These new instruments address systemic risks arising from the debt financing of real estate.

Press Release

16th meeting of the Financial Market Stability Board

In its 16th meeting on July 4, 2018, the Financial Market Stability Board (FMSB) adopted three recommendations to the Austrian Financial Market Authority (FMA) concerning the macroprudential capital buffers. Looking back, the FMSB concluded that macroprudential supervision has contributed substantially to reducing systemic risks in the past few years. Standard & Poor’s (S&P’s) rating upgrade for the Austrian banking system in May of this year attests to this favorable development. The Austrian banks and, by extension the Austrian economy, consequently benefit from lower risk premiums. S&P considers the Austrian banking system to be one of the most stable banking systems worldwide. Moreover, the FMSB re-addressed sustainable lending standards in real estate funding.


Tasks of the FMSB

The Financial Market Stability Board (FMSB) has been established to strengthen cooperation in the field of macroprudential supervision and to promote financial market stability. The tasks of the FMSB have been defined in the Federal Act on the Institution and Organisation of the Financial Market Authority.