50th meeting of the Financial Market Stability Board
The evaluation of the systemic risk buffer (SyRB) and the other systemically important institutions (O-SII) buffer was the main item on the agenda of the 50th meeting of Austria’s Financial Market Stability Board (FMSB) on 14 September 2026.
Systemic risk buffer (SyRB) and O-SII buffer
At its 50th meeting, the FMSB completed its review of both the systemic risk buffer (SyRB) and the O-SII buffer and issued a corresponding recommendation to the Financial Market Authority (FMA).
The SyRB was introduced ten years ago to reduce the risk of costly bank bailouts and to facilitate a smooth transition to new banking supervision and resolution rules. Systemic risks have decreased since then: Systemic concentration risk has declined to such an extent, in part thanks to mostly improved country ratings in Central, Eastern and Southeastern Europe (CESEE), that it no longer needs to be considered as a buffer component. Moreover, the banking sector’s resilience has improved as a result of higher capitalisation and profitability as well as further progress in the resolvability of banks. Nevertheless, challenges remain: In particular, the size of the Austrian banking sector is still a potential source of systemic risk. There is some uncertainty whether the sector’s high profits and capital ratios will prove sustainable, especially in light of recent acquisitions and a rising need for provisions for non-performing exposures (“backstops”). Also, the current European resolution framework has yet to be put to the test. At the same time, the real economy has become more vulnerable to shocks given ongoing geopolitical turmoil and limited fiscal space. The FMSB therefore proposed to the FMA that the buffer for systemic concentration risks be reduced to 0% in two steps and that the buffer for systemic vulnerability be left at 0.75% (before overlap) for the time being. At the next evaluation, scheduled for 2028, the FSMB will assess whether banks’ enhanced resilience has been sustainable.
The O-SII buffer aims to mitigate "too big to fail" risks posed by systemically important institutions. There have been no changes to the classification of banks as systemically important institutions since last year. Some Austrian banks’ acquisitions that have resulted in changes in the market structure will be taken into account in the next cycle because they were not reflected in the relevant reporting data at the 31 December 2025 reference date.
Details about the selected banks and buffer levels can be found in the recommendation to the FMA.
Countercyclical capital buffer (CCyB)
The FMSB advises the FMA to maintain the CCyB at its current rate of 0% of domestic risk-weighted assets. Only 3 out of 16 indicators pointed towards heightened financial cycle risks in the second quarter of 2026. The two gap indicators (credit-GDP), which carry a higher weight in the assessment of financial cycle risks, remained below their critical thresholds. For details, see Recommendation FMSB/3/2026.
An interactive dashboard showing systemic cyclical risk indicators is available on the OeNB website.