Recommendation FMSB/4/2020: guidance on applying the countercyclical capital buffer (CCyB)

25th meeting, September 15, 2020

In line with Article 23a para. 1 of the Austrian Banking Act, the Financial Market Stability Board (FMSB) recommends that the Financial Market Authority (FMA) leave the countercyclical capital buffer (CCyB) at a rate of 0% of risk-weighted assets from January 1, 2021. In the current macroeconomic environment, there are no signs of cyclical overheating. Moreover, the main indicator guiding decisions on CCyB rates from a technical perspective, i.e. the credit-to-GDP gap, is negative. The rise in the credit-to-GDP ratio toward the end of the first quarter of 2020 is mostly explained by a decline in GDP (–1.7%), while credit growth remained stable (+4.8%).