AUSTRIA: FMA Becomes National Resolution Authority

Wednesday January 14 2015

News Source: Global Exchanges

Focus: Trading Systems and Technology

Type: General

Country: Austria

Link: https://www.fma.gv.at/en/about-the-fma/media/press-releases/press-releases-detail/article/oesterreichs-finanzmarktaufsichtsbehoerde-fma-uebernimmt-mit-112015-auch-die-funktion-als-national.html

On 1st January 2015 the Austrian Financial Market Authority (FMA) became the national resolution authority by virtue of the Federal Act on the Recovery and Resolution of Banks (BaSAG; Bundesgesetz über die Sanierung und Abwicklung von Banken). This represents a step toward the European Banking Union.

The role of the FMA as national resolution authority includes:

selling the institution
setting up a bridge bank
spinning off assets
bailing in creditors (i.e. The national resolution authority can avail of its institutional allowance to cover loss.)

Click on the above link for further details.