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Updated Overview of Banking Regulation in Austria (December 2022)

Peter Knobl, partner at CERHA HEMPEL specializing in banking supervisory and capital markets law, has updated the Overview of Banking Regulation in Austria, published by Thomson Reuters, to reflect the current status of the law as of 1 December 2022.

Peter Knobl, partner at CERHA HEMPEL specializing in banking supervisory and capital markets law, has updated the Overview of Banking Regulation in Austria, published by Thomson Reuters, to reflect the current status of the law as of 1 December 2022. Those in need of a compact, comprehensible, quick and up-to-date overview of the practical application of Austrian banking supervisory law can find all the information they need in the form of a Q&A document, up to date as of 1 December 2022 and downloadable from https://uk.practicallaw.thomsonreuters.com/w-007-5098?transitionType=Default&contextData=(sc.Default)&firstPage=true. The update reflects the application of risk-based and leverage-based MREL quota, as well as the application of the minimum requirements for mandatory, subordinated eligible liabilities ratios in Austria; the integration of sustainability risks in a bank’s organization, procedures and conduct of business; the Austrian Act on Covered Bonds; the amended provisions on capital adequacy and leverage; the amended EBA guidelines on internal governance, fitness and propriety; and the postponement of the Basel IV regime to 2025. The upcoming entry into force of the new Investment Firms Act 2023 is already reflected in the Q&A document, as are the maximum loan-to-value ratios, maximum debt service ratios and maximum terms for real estate financing provided to private customers  based on the FMA’s Regulation on Measures to Limit Systemic Risks relating to Real Estate Financing, all of which came into effect on 1 August 2022. The updated document is also a valuable aid both for domestic and foreign market participants, be they existing banks or newcomers.