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 comprehensive stress testing, continuous monitoring of borrower creditworthiness against exchange rate fluctuations, and specific consumer protection measures to address systemic risks and funding gaps. These guidelines replace the 2017 version and serve as practical recommendations for fulfilling legal due diligence obligations under the Austrian Banking Act.
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