The latest recommendation of Austria’s Financial Market Stability Board (FMSB) to the Financial Market Authority (FMA), in line with Article 23a para. 1 Austrian Banking Act, is to leave the countercyclical capital buffer (CCyB) unchanged at a rate of 0% of risk-weighted assets. In an environment of ongoing uncertainty, banks need to ensure capital levels that are adequate by international standards and they need to build up sufficient risk provisions to be prepared for dealing with cyclical risks should they materialize.
