Regulatory Requirements for Banks in Austria

Capital Requirements

Banks in Austria are subject to a range of capital requirements designed to ensure their stability and resilience. These include:

• Minimum Capital Requirements: 8% of risk-weighted assets, with an expectation to maintain a higher level of capital to reflect their risk profile.
• Capital Conservation Buffer: 2.5% of risk-weighted assets to ensure sufficient capital to withstand future periods of stress.
• Countercyclical Capital Buffer: Up to 2.5% of risk-weighted assets, set by the Austrian National Bank (OeNB) depending on the state of the economy and credit cycle.
• Additional Own Funds Requirements: Banks may be required to maintain additional own funds for systemic risk purposes based on their size and importance to the financial system.

Additional Regulatory Frameworks

Banks in Austria are also subject to various regulatory frameworks designed to ensure their stability and resilience. These include:

Basel III Framework

The CRD IV and CRR set out the requirements for capital, liquidity, and risk management for banks in the EU, with some modifications made by the EU to better suit its banking sector.

Reporting and Disclosure Requirements

Banks are subject to a range of reporting and disclosure requirements designed to ensure transparency and provide regulators and other stakeholders with accurate and timely information about their financial condition. These include:

• Financial Reporting: Regular financial reports submitted to regulatory authorities.
• Capital Adequacy Reporting: Reports on banks’ capital adequacy, including the level of risk-weighted assets and the amount of available capital.
• Liquidity Reporting: Reports on banks’ liquidity position, including their ability to meet short-term obligations.
• Large Exposures Reporting: Reports on banks’ large exposures, including their exposure to individual counterparties.
• Stress Testing: Regular stress tests conducted by regulatory authorities to assess the resilience of banks in times of economic stress.
• Disclosure of Related Party Transactions: Disclosure of transactions between related parties, such as subsidiaries or parent companies.

Organizational Requirements

Banks must establish a clear governance structure, conduct fit and proper assessments for management body members, have a robust risk management framework, an effective internal control framework, and ensure compensation is aligned with the bank’s risk profile.