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 institutions regarding the management of counterparty risks and lending business. It mandates that management boards define and maintain a comprehensive risk strategy, ensure proper organizational structures with functional separation, and implement robust processes for loan origination, monitoring, and risk controlling. The standards apply to all credit institutions licensed under the Austrian Banking Act, with proportional implementation permitted for smaller entities, while explicitly noting overlaps with European Banking Authority guidelines.
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