Press Release

21st meeting of the FMSB

The FMSB discussed the effectiveness of its guidance on sustainable real estate financing and the availability of data on commercial real estate, renewed its recommendation regarding the buffer for other systemically important institutions (O-SII buffer) and recommended that the countercyclical capital buffer be kept at 0% also in Q1 2020.

News

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.

FMSB

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.