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Austrian regulator orders system-relevant banks to up capital buffers

Published by Uma Rajagopal

Posted on December 22, 2022

1 min read

· Last updated: February 2, 2026

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Logo of Austria's financial regulator FMA in Vienna related to banking capital buffers - Global Banking & Finance Review
The image features the logo of the Austrian Financial Market Authority (FMA) located in Vienna, highlighting the regulator's directive for system-relevant banks to increase capital buffers due to economic uncertainties.
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BERLIN (Reuters) – Austrian banking regulator FMA said on Thursday it has ordered system-relevant banks in the country to increase their capital buffers by 0.25 percentage points to 0.5 percentage points, in response to uncertainty triggered by the war in Ukraine. The buffers are to be built up gradually by end-2023, FMA said in a […]

BERLIN (Reuters) – Austrian banking regulator FMA said on Thursday it has ordered system-relevant banks in the country to increase their capital buffers by 0.25 percentage points to 0.5 percentage points, in response to uncertainty triggered by the war in Ukraine.

The buffers are to be built up gradually by end-2023, FMA said in a statement.

Among those counted as system-relevant banks in Austria are Erste Group, Raiffeisen Bank International and UniCredit Bank Austria.

(Writing by Rachel More, Editing by Miranda Murray)

Frequently Asked Questions

What is a capital buffer?
A capital buffer is a reserve of capital that banks are required to hold to absorb potential losses. It helps ensure that banks remain solvent during financial stress.
What is a system-relevant bank?
A system-relevant bank is a financial institution whose failure could trigger a financial crisis due to its size, interconnectedness, or critical functions in the financial system.
What is the role of a banking regulator?
A banking regulator oversees financial institutions to ensure their safety and soundness, compliance with laws, and protection of consumers and the financial system.
What is capital adequacy?
Capital adequacy refers to a bank's ability to maintain sufficient capital to cover its risks and obligations, ensuring financial stability and protecting depositors.
What is the significance of capital buffers?
Capital buffers are crucial for maintaining a bank's resilience against financial shocks, helping to prevent insolvency and protect the overall financial system.

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