Recommendation FMSB/4/2025: guidance on adjusting the other systemically important institution (O-SII) buffer

46th meeting, October 1, 2025

At its 46th meeting on October 1, the Financial Market Stability Board (FMSB) evaluated the other systemically important institution (O-SII) buffer.

In light of developments in the Austrian banking sector, there are no reasons at the present time to make any changes to the list of identified institutions or their buffer rates. The FMSB therefore recommends maintaining the current O-SII buffer rates.

The annual review follows the guidelines of the European Banking Authority (EBA/GL/2014/10). This involves calculating a score that approximates the systemic importance of a bank. The score is supplemented by additional indicators and is used to determine banks’ buffer rates, as shown in the table below (see the OeNB website for a detailed explanation of the methodology).

Allocation of scores to buffer rates
 Bucket  O-SII buffer 
(pre-overlap)		  O-SII buffer
(post-overlap)		  Score
Bucket (1)  0.5% CET1   0.45% CET1   nur Zusatzindikator und <275
Bucket (2)  1.0% CET1   0.90% CET1   275-636
Bucket (3)   1.5% CET1   1.30% CET1   637-999
Bucket (4) 2.0% CET1   1.75% CET1   1000-3399
Bucket (5)  2.5% CET1   2.20% CET1   ≥3400
Source: OeNB
Note: “Pre-overlap” means prior to adjusting for overlap with systemic risk buffer. 

Compared to the previous year, on an unconsolidated basis, two banks have dropped below the relevant thresholds. UniCredit Bank Austria is now below the 1,000 threshold and Erste Bank der oesterreichischen Sparkassen has fallen below the 275 threshold. In accordance with the one-year observation period introduced in 2023, the systemic importance of the two banks may be downgraded next year if this decline proves to be permanent. The purpose of this observation period is to prevent overly frequent adjustments to buffer rates. 
If the 2026 review finds that the systemic importance of the two banks remains at a lower level, UniCredit Bank Austria will be placed in Bucket 3 and Erste Bank der oesterreichischen Sparkassen will be allocated to Bucket 1 (on an unconsolidated basis). 
This year’s review also concluded that the systemic importance of Erste Group Bank and BAWAG had increased, but neither bank had exceeded the relevant thresholds. If Erste Group Bank’s acquisition in Poland goes ahead as planned, Erste Group Bank's score will increase in the 2026 review. 

At a consolidated and unconsolidated level, the board recommends the following O-SII buffer rates, which are unchanged from the previous year:

O-SII scores and buffer rates in 2025, consolidated and unconsolidated level
 
  Relevant score
(max. of EBA score and EBA AT score)		 EBA
score		 Δ EBA AT
score		 Δ Bucket
(unchanged)		 Buffer
(unchanged,
post-overlapp)
consolidated level  
UniCredit Bank Austria 1007 953 -21 1007 -16 4 1.75%
BAWAG 605 605 +113 583 +81 2 0.90%
Erste Group Bank 3008 3008 +50 2893 +61 4 1.75%
Raiffeisen Bank International 1952 1952 -69 1811 -68 4 1.75%
Raiffeisen-Holding Niederösterreich-Wien 285 274 -29 285 -28 2 0.90%
RLB OÖ 406 406 -18 405 -18 2 0.90%
Volksbanken Verbund 214 186 +7 214 +9 1 0.45%
 
unconsolidated level  
UniCredit Bank Austria 985 933 -20 985 -16 4 1.75%
BAWAG 508 498 0 508 +1 2 0.90%
Erste Group Bank 1428 1428 +37 1422 +37 4 1.75%
Erste Bank der österr. Spk. 267 231 -17 267 -15 2 0.90%
Steiermärkische Bank und Spk. 122 105 -1 122 0 1 0.45%
Raiffeisen Bank International 1203 1203 -18 1196 -18 4 1.75%
RLB NÖ-W 304 290 -32 304 -31 2 0.90%
RLB OÖ 426 423 -15 426 -14 2 0.90%