Recommendation (FMSB/5/2025): guidance on applying the countercyclical capital buffer

The latest recommendation of Austria’s Financial Market Stability Board (FMSB) to the Financial Market Authority (FMA), in line with Article 23a para. 1 Austrian Banking Act, is to leave the countercyclical capital buffer (CCyB) unchanged at a rate of 0% of risk-weighted assets.

As of September 30, 2025, two indicators of the banks dimension – excess capital and liquidity buffer quality – pointed to cyclical risks. Both excess capital and highly liquid assets are currently above average in the entire banking system. Moreover, the two gap indicators (standard and new business) were below their thresholds as of September 30, 2025. New lending has remained at a stable level since March 2025, despite only moderate economic growth. Loan growth is moderate and, at present, does not indicate imminent cyclical risks.

Still, banks are called upon to set aside additional loan loss provisions given that insolvency rates have remained high, the economic outlook is subdued, and geopolitical uncertainty persists.

An interactive version of the dashboard of systemic risk indicators is available on the OeNB website.