A planned circular of the financial market regulator will replace the KIM regulation from July, which has determined the strict rules for loans. Banks fear a new edition “by the back door”, the State Secretary of the Ministry of Finance requires “noticeable”.
Bad news for Häuslbauer-Toen de FMA promised the end of the KIM Regulation, many breathed, but a planned circular that is available at the “Kroon” shows that the authority wants to continue to insist on the rules and set the previous key points as a guideline. The assessment of the “design consultation” ended on Tuesday. Changes are possible, but fundamentally, hardly anything should change, the line of supervision is probably certain.
Previous rules in the future as an urgent recommendation
In addition, 40 percent of the income must be used for a maximum of the credit percentage. Moreover, the STD can be a maximum of 90 percent – that means that the loan must be a maximum of 90 percent of the real estate value. And the loan must take a maximum of 35 years. These rules have been with the introduction of the KIM Regulation.
Now they are no longer considered a regulation, but the FMA spends the standards as “supervision of expectations”. Supervisory Board Helmut ETTL talks about “more scope” in the loans “, if banks deviate considerably from these rules, we will ask you why you still consider borrowing as sustainable”.
Bankman finds procedure “Incomprehensible”
The banks criticize the plan. For bank chairman Michael Höllerer, who also acts as the CEO of Raiffeisen Lower Austria, he is “completely incomprehensible”: “If the rules of the KIM regulation are finally abolished, there may be no new one by the back door of the FMA round letter.”
In their own interest, the banks would carefully check if they are not needed that extra obstacles are not necessary. “Especially now that many families moan at high costs and the economy is under pressure, there should not be unnecessary bureaucracy.”
There is also resistance in politics, not only by the countries: the State Secretary Barbara Eibinger-Miedl, who is responsible for the capital market in the Ministry of Finance, demand that losing are also “noticeable”. There is no more systemic risk, therefore there is no basis for the regulation.
FMA: The building crisis was not due to the KIM Regulation
However, the regulation was not decisive for the building crisis and the rules were not too strict, the FMA replies. Even before the passage, the lending attracted lending because the prices fell and the income rose. “What Häuslbauer should consider when it comes to a loan is already common for common sense: bring your own savings, do not take over, do not take care of the loan rate and be debt -free before the pension.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
