Crisis in the construction sector: Hope for loosening lending!

Crisis in the construction sector: Hope for loosening lending!

Salzburg, Österreich - The construction industry in Salzburg faces challenging times. At a meeting in the Salzburg apprenticeship station, representatives of the industry discussed the tense situation. "The prospects are not exactly rosy," said Stephan Gröger of the non -profit building associations. The hope of recovery comes from a possible loosening of the loan guidelines, known as a KIM regulation, which has been in force since August 2022. This regulates that borrowers have to apply at least 20 percent of equity and the term of the loans is limited to 35 years. A loss of these strict prerequisites could lead to increasing construction projects, which Peter Buchmüller also emphasizes: "We have always pointed out that the rules are too strict."

But the general mood remains careful. State Councilor Martin Zauner (FPÖ) warns that the end of the KIM regulation alone is not sufficient to help the tense construction sector decisively. "In these times of crisis, one is rather reserved. The creation of the KIM has been announced and not yet fixed," warns Zauner. The Austrian National Bank therefore recommends that the strict guidelines to be maintained in order to prevent possible debt by borrowers, which is connected to the weak economic situation.

regulation of banks

In the context of these developments, European banking supervision also plays an important role. The European banking supervision (EBA) has taken a number of regulatory measures to ensure uniform standards in the EU banking sector. These include binding technical standards and guidelines that aim to secure the stability of the banks and to minimize the risk of credit. The aim is to create a uniform regulatory framework that should strengthen the trust of the lenders even in times of crisis. Especially with regard to the upcoming changes in the credit distribution guidelines, the role of EBA could be crucial for the regulation and monitoring of financial practices in Europe.