EBA approves Austrian macroprudential measure on real estate exposures

The European Banking Authority (EBA) has provided its opinion to the European Commission regarding Austria’s intention to increase the sectoral systemic risk buffer to address risks in the commercial real estate market.

The measure involves raising the systemic risk buffer rate from 1% to 3.5% for Austrian credit exposures to non-financial corporations in construction, specialized construction activities, and real estate services. Exposures to limited profit housing associations are exempt. The buffer will be phased in, starting at 2% on July 1, 2026, and reaching 3.5% on July 1, 2027.

The combined systemic risk buffer and O-SII buffer rates would exceed 5%, reaching between 5.75% and 6.25% for targeted exposures of three institutions. The measure applies on a consolidated, sub-consolidated, and individual basis.

The EBA notes the concerns of the Austrian FMA regarding macroprudential risks and emphasizes the need for continued coordination and effective information sharing among authorities. It also highlights the importance of a holistic approach to monitoring measures to prevent overlaps in capital requirements.

The measure is based on a notification from the European Systemic Risk Board (ESRB) on March 20, 2026, under Article 133(11) of Directive 36/2013/EU (CRD). The EBA’s opinion was issued within the six-week timeframe specified by the directive.