Recommendation for the Enactment of the Systemic Risk Buffer (FMSG/1/2015)
Fourth meeting, June 1, 2015The FMSB has made a recommendation to the FMA to enact a systemic risk buffer to protect against long-term non-cyclical systemic risks, resulting in a cumulative systemic risk buffer of up to 3% of risk-weighted assets for identified institutions. A buffer of 1% of risk-weighted assets should allow the "systemic vulnerability" of Austrian banks to be accounted for. A buffer of up to 2% of risk-weighted assets should in turn address "systemic cluster risk".
Both components combine to form a cumulative systemic risk buffer for identified institutions of up to 3% of risk-weighted assets.
The systemic risk buffer is due to enter into force on 1 July 2016.
Transitional period: For those banks, for which a systemic risk buffer of 3% has been prescribed, the systemic risk buffer is to be introduced gradually, in order to give the banks adequate time to be able to prepare in order to comply with the capital buffer requirement. Therefore, a systemic risk buffer of 2% shall apply for these banks during the transitional period from 1 July 2016 until 30 June 2017.
| systemic vulnerability | systemic cluster risk | Systemic Risk Buffer Level | |
|---|---|---|---|
| as a percentage of risk-weighted assets | |||
| Erste Group Bank | 1% | 2% | 3% |
| Raiffeisen Zentralbank | 1% | 2% | 3% |
| Raiffeisen Bank International | 1% | 2% | 3% |
| UniCredit Bank Austria | 1% | 2% | 3% |
| Raiffeisenlandesbank Oberösterreich | 1% | 0% | 1% |
| Raiffeisen−Holding Niederösterreich− Wien | 1% | 0% | 1% |
| BAWAG P.S.K. | 1% | 0% | 1% |
| Hypo NOE Gruppe Bank | 1% | 0% | 1% |
| Vorarlberger Landes- und Hypothekenbank | 1% | 0% | 1% |
| Hypo Tirol Bank | 1% | 0% | 1% |
| Oberösterreichische Landesbank | 1% | 0% | 1% |
| Sberbank | 0% | 1% | 1% |
Transitional period: For those banks (EGB, RZB, RBI and UCBA), for which a systemic risk buffer of 3% has been prescribed, the systemic risk buffer is to be introduced gradually, in order to give the banks adequate time to be able to prepare in order to comply with the capital buffer requirement.
Therefore, a transitional period from 1 July 2016 until 30 June 2017 has been prescribed for these banks, during which a systemic risk buffer of 2% shall apply.
The higher of the respective systemic risk buffer and systemically important institution buffer shall be applied. In the currently prevailing case, this is the systemic risk buffer.