Recommendation for the activation of the countercyclical capital buffer (FMSG/1/2016)

 The FMSB reaffirmed its recommendation to the Austrian Financial Market Authority (FMA) to set the countercyclical capital buffer (CCB) rate at 0% of risk-weighted assets. Total outstanding loans relative to GDP have fallen well below their long-term trend, and Austrian banks continue to have sound balance sheets in terms of their unconsolidated aggregate leverage ratios (tier 1 capital relative to total assets). Furthermore, the Austrian current account does not point to any major imbalances in terms of economic growth.