Regulatory Alerts2022-04-28
FMA Minimum Standards for Lending Business and Other Transactions with Counterparty Risks (Recast April 2022)
The Austrian Financial Market Authority (FMA) issued this recast document to establish supervisory expectations for credit and financial institutions regarding the management of counterparty risks. It mandates that management boards define and maintain a comprehensive risk strategy, ensure proper organizational structures, and implement robust procedures for loan origination, monitoring, and risk controlling. The standards apply to all lending transactions and require proportional implementation based on the institution's size and complexity, while remaining fully compliant with relevant European Banking Authority guidelines.
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