Regulatory Alerts2023-08-03
FMA Minimum Standards for the Risk Management and Granting of Foreign Currency Loans and Loans with Repayment Vehicles - Revised Version - August 2023
The Austrian Financial Market Authority issued revised minimum standards requiring credit institutions to implement robust risk management and stricter granting procedures for foreign currency loans and loans with repayment vehicles. The document mandates enhanced borrower suitability assessments, specific stress testing, and continuous monitoring of exchange rate risks to mitigate systemic threats to the Austrian financial market. It further imposes special provisions for consumers, including restrictions on new lending and requirements for sustainable portfolio reduction, while clarifying that these standards serve as guidance for legal compliance rather than creating independent obligations.
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