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Financial stability in the focus: News about real estate loans and risks
On February 26, 2025, the FMSG discussed standards for sustainable real estate loans and the anti -cyclical capital buffer.
Financial stability in the focus: News about real estate loans and risks
On February 26, 2025, the 44th session of the Financial market stability committee (FMSG) instead of, in which the focus was on essential topics such as the anti -cyclical capital buffer and sustainable standards for residential property financing. The committee discussed the need for sustainable lending standards, especially initiated by the upcoming termination of the credit institutions real estate financing measures (KIM-V). The new guidelines include fixed standards: the lending rate should not exceed 90%, the debt ratio 40% and the maximum term for 35 years. It is crucial that only 20% of the new loans must not fulfill these criteria.
Another important point was to adapt the registration frequencies. In order to ensure faster monitoring, data reporting is converted from every six months to quarterly. In addition, the Austrian National Bank will regularly publish updates for lending to create more transparency. The recommendation to leave the anti-cyclical capital buffer to 0% was also affirmed, since the credit BIP gap continues to be under the critical threshold in the third quarter of 2024.
Earlier meetings and future plans
For the year 2025, the body plans to further develop the methodology for the identification of cyclical risks and to evaluate the adequacy of the system risk buffer. The focus is on the systemic risks both in the residential and commercial real estate sector, as was recorded in the plans for the committee's work program in January, as well as from FMSG reports.