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.
