Regulatory Alerts2024-06-26
Regulation on Real Estate Financing Measures in Credit Institutions (KIM-V)
The Austrian Financial Market Authority issued this regulation to limit systemic risk in private residential real estate financing by imposing upper limits on the loan-to-collateral ratio, debt service-to-income ratio, and loan maturity. The rules apply to credit institutions operating in Austria and define specific calculation methodologies for these metrics while excluding small loans under a de minimis threshold. Institutions are permitted to exceed the standard limits for a maximum of 20% of new financings, subject to specific volume caps and reporting requirements.
Share