ANNOUNCEMENT 21 Nov 2011In November 2011, the government of Austria announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
Austrian National Bank. (2011). FMA und OeNB erarbeiten Ma?nahmenpaket zur St?rkung der Nachhaltigkeit der Gesch?ftsmodelle ?sterreichischer Banken. Available at http://www.oenb.at/de/presse_pub/aussendungen/2011/2010q4/pa_20111121_fma_und_oenb_erarbeiten_massnahmenpaket_zur_st_241498_page.jsp#tcm:14-241498
On 21 November 2011, Austrian financial market regulators tightened international lending standards for domestic banks. In a joint statement of the Austrian National Bank (OeNB) and the Financial Market Authority (FMA), the regulators announced changes to make the domestic financial system "more sustainable". The measures shall come into effect by year's end.
Among the announced measures is a cap on the loan-to-deposit ratio for operations in Central, Eastern and Southeastern Europe (CESEE countries). The ratio shall no longer exceed 1.1 or 110 percent thus curbing lending in the region.
Further measures included in the package are an early fullfilment of "Basel III" capital ratio standards. Austrian banks shall reach these requirements by 2013, thus skipping the transition period. In addition, Austrian banks shall add up to an extra 3 percent of core capital depending on their business model by 2016. Finally, banks are requested to provide a "Living Will" as well as a "Resolution Scheme" to the regulators at an unspecified date.