Press Release

22nd meeting of the FMSB

The FMSB evaluated whether the intermediate macroprudential objectives have been met and whether the measures taken in line with the macroprudential policy strategy have been effective. Moreover, the FMSB renewed its recommendation to leave the countercyclical capital buffer rate at 0% for Q2 of 2020.


Guidance on applying the O-SII buffer

In its 21st meeting on September 9, 2019, the Financial Market Stability Board (FMSB) evaluated the other systemically important institution (O-SII) buffer. Other systemically important institutions can create risks to a country’s financial system. Their systemic relevance and anticipation of bailout in the event of a crisis can cause moral hazard. The O-SII buffer reduces the likelihood of bank failure and therefore (partly) offsets the higher social costs that result from a malfunctioning or failure of a credit institution (Article 23c Austrian Banking Act). The Austrian Bank Recovery and Resolution Act (BaSAG)1 likewise contributes to addressing these risks, as it allows banks to exit the market at lower social cost.


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.