The strict credit rules for Häuslbauer expire in June, but must be de facto with a circular of supervision, the criticism is. This is indignant by the federal states in a letter, the chairman of the Governor Conference, Wilfried Haslauer, expresses “massive incapacity” about the procedure.
The credit rules of the KIM Regulation will expire at the end of June. But critics are already afraid of a new edition “through the back door”. A circular is planned for July in which the FMA authority continues to insist on the previous rules. This immediately called on the banks that criticize this as excessive. The Minister of Finance Barbara Eibinger-Miedl (ÖVP) also recently called for “noticeable racks” in the “Krone”. Now the governors are consisting of the supervision procedure.
Governants criticize FMA board members
In a letter (see below) the chairman of the Governor Conference and Salzburg Gouverneur Wilfried Haslauer attacks the two FMA board members to Helmut ETTL and Eduard Müller and asked urgently to send the authority.
The letter talks about the “enormous lack of understanding of the de facto” of the Regulation. Haslauer asks not to “spend the guideline” – “with emphasis” and in the name of all governors in party borders.
Rules for Haslauer not understandable
Because the rules of the previous regulation have ‘huge negative economic effects’, it says. The standards are also not understandable, because “the failures of loans of homes in the bank space are less than one percent,” said the letter presented by the “Kroon”.
The criticism of the federal states is not new: the regulation has demolished the new credit activities and the construction sector suffered in all federal states. The corner stones are: borrower must use a maximum of 40 percent of their income for the credit percentage, the term can be a maximum of 35 years and the own funds must be at least 20 percent.
If these rules are now de facto, the crisis would only sharpen again, the politicians warn. The governor of Lower Austria, Johanna Mikl-Leitner, has also positioned himself several times against the financial market supervision in the KIM Regulation.
FMA: Credit Demand has risen since the start of the year
The FMA responds to the letter in a statement on the “Kroon” and does not share the assessment of Haslauer at all. From January to April, more than 5.2 billion euros in loans were granted for the acquisition of houses, more than a year ago two -thirds. The area becomes despite the recession. “The KIM Regulation has not been against this in recent months,” emphasizes a spokesperson. The standards are also not particularly strict. According to FMA, the interest landscape, income and real estate prices are much decisive. These have led to relaxation since the beginning of the year.
The conflict between countries and bank surveillance will continue. However, time is already insisting, because the circular must replace the previous regulation from the beginning of July. The fact that the FMA leaves its line is unlikely because it is a jointly defined line of the “Financial Market Stability Committee”, consisting of representatives of the FMA, the Ministry of Finance, the Fiscal Council and the National Bank.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
