The EBA issues an opinion about an Austrian macroprudential measure

The European Banking Authority (EBA) provided its opinion to the European Commission about the intention by the Austrian Financial Market Authority (FMA) to increase the level of an existing sectoral systemic risk buffer to address risks in the Austrian commercial real estate market. This measure would result in the sum of the other systemically important institutions (O-SII) buffer rate and the combined systemic risk buffer rate exceeding 5% for the targeted exposures of a subset of banks. The EBA does not object to it.

The measure increases an existing systemic risk buffer rate from 1% to 3.5% for Austrian credit exposures to non-financial corporations operating in the construction of buildings, specialised construction activities, and real estate services. Exposures to limited profit housing associations are exempt. Institutions are required to apply the measure on a consolidated, sub-consolidated, and individual basis. The higher buffer rate will be phased in, starting at 2% on 1 July 2026 and reaching 3.5% on 1 July 2027.

In its opinion to the European Commission, the EBA notes the ongoing concerns of the Austrian FMA regarding macroprudential risks related to commercial real estate exposures in Austria. It calls for continued coordination and effective information sharing among the relevant authorities to ensure that the measures do not negatively affect the functioning of the internal market. Finally, the EBA emphasises the importance of a holistic approach to monitoring existing measures to avoid unintended overlaps in capital requirements.

Legal basis

On 20 March 2026 the EBA received a notification from the European Systemic Risk Board (ESRB) on the intention of the Austrian FMA, to apply Article 133(11) of Directive 36/2013/EU of the European Parliament and of the Council (Capital Requirements Directive, CRD). The higher buffer rate would result in the sum of the O-SII buffer rate and the combined systemic risk buffer rate between 5.75% and 6.25% for the targeted exposures of three institutions.

In accordance with Article 131(15) and in conjunction with Article 131(5a) of the same Directive, the EBA may within six weeks provide the European Commission its Opinion on the buffer.