Regulatory Alerts2021-12-02
Added · Updated
Recommendation of the European Systemic Risk Board on medium-term vulnerabilities in the residential real estate sector in Austria
The ESRB recommends that Austrian authorities activate legally binding borrower-based measures, such as limits on loan-to-value and debt service-to-income ratios, to mitigate medium-term vulnerabilities in the residential real estate sector. It further advises activating or tightening capital-based measures, including sectoral systemic risk buffers or countercyclical capital buffers, if borrower-based tools prove insufficient. Relevant authorities must report on actions taken or justify inaction to the European Parliament, Council, Commission, and ESRB by 30 June 2023 and 30 June 2025.