Recommendation (FMSB/2/2026): 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 the reference date 31 March 2026, only one of 16 indicators – liquidity buffer quality – points to cyclical risks. This means that the Austrian banking system continues to show an above-average level of highly liquid assets. Excess capital and the Composite Indicator of Systemic Stress (CISS) had been standing out in Q4 2025 but moved back into a range considered unremarkable from a countercyclical perspective in Q1 2026. Excess capital dropped mainly due to Erste Bank Group’s acquisition of Santander Poland, while the rise in the CISS is linked to geopolitical uncertainties. The gap indicator of credit volumes (“standard”) and the gap indicator “new business” are also below their thresholds. Economic growth remains moderate, and new lending has been broadly stable, but accelerating (+13%) since March 2026.

Overall, these developments do not indicate imminent cyclical risks as of 31 March 2026.

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