Regulatory Alerts2023-07-24
Regulation of the Austrian Financial Market Authority Supplementing the Building Society Act
The Austrian Financial Market Authority issued this regulation to establish prudential and operational rules for building societies under the Building Society Act. It caps individual building savings loans at EUR 260,000 while permitting larger loans for specific large-scale construction projects, subject to strict portfolio concentration limits of 10 percent for unallocated large-scale contracts and 5 percent for annual new contracts. The text further governs the transfer of contracts, authorizes uncollateralized loans up to EUR 40,000, details the calculation and deployment of the Building Society Protection Fund, and sets exposure limits for loans to associated undertakings and guarantees.
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