The European Banking Authority provided its positive opinion on Austria’s plan to increase the systemic risk buffer for certain real estate exposures, starting July 2026, to address macroprudential risks.
The European Banking Authority (EBA) issued its opinion to the European Commission regarding Austria’s intention to increase the systemic risk buffer for specific credit exposures. The measure aims to address risks in the Austrian commercial real estate market.
The proposed measure would raise the systemic risk buffer rate from 1% to 3.5% for exposures to non-financial corporations involved in building construction, specialized construction activities, and real estate services. Exposures to limited profit housing associations are exempt. The increase will be phased in, starting at 2% on 1 July 2026 and reaching 3.5% on 1 July 2027.
The measure results in the combined buffer rate exceeding 5% for certain banks’ targeted exposures. The EBA does not object to the measure but emphasizes the need for coordination and effective information sharing among authorities to prevent negative impacts on the internal market. It also highlights the importance of a holistic approach to monitoring existing measures to avoid overlaps in capital requirements.
Legal basis: On 20 March 2026, the EBA received a notification from the European Systemic Risk Board (ESRB) regarding Austria’s application of Article 133(11) of Directive 36/2013/EU (Capital Requirements Directive). The higher buffer rate would result in a combined O-SII and systemic risk buffer between 5.75% and 6.25% for three institutions’ targeted exposures.
Under Articles 131(15) and 131(5a) of the same Directive, the EBA has six weeks to provide its opinion to the European Commission.
