ESRB European Systemic Risk Board : Notification by the Austrian Financial Market Authority on nine Other Systematically Important Institutions (O-SIIs)

Notification template for Article 131 CRD - Other Systemically Important Institutions (O-SII)

Please send this template to

• [e-mail] when notifying the ESRB;

• [e-mail] when notifying the ECB;

• [e-mail] when notifying the EBA.

Emailing this template to the above-mentioned addresses constitutes an official notification, no further official letter is required. In order to facilitate the work of the notified authorities, please send the notification template in a format that allows electronically copying the information.

1. Notifying national authority
1.1 Name of the notifying authority	Austrian Financial Market Authority
2. Description of the measure
2.1 Concerned institution or group of institutions	Institution Erste Group Bank AG Raiffeisen Bank International AG UniCredit Bank Austria AG Basis consolidated consolidated consolidatedLEI PQOH26KWDF7CG10L6792 9ZHRYM6F437SQJ6OUG95 D1HEB8VEU6D9M8ZUXG17 BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft on the basis of the consolidated situation of BAWAG Group AG consolidated 529900ICA8XQYGIKR372 Raiffeisenlandesbank Oberösterreich Aktiengesellschaft on the basis of the consolidated situation of Raiffeisenbankengruppe OÖ Verbund eGen RAIFFEISEN-HOLDING NIEDERÖSTERREICH-WIEN registrierte Genossenschaft mit beschränkter Haftung consolidated I6SS27Q1Q3385V753S50 consolidated 529900SXEWPJ1MRRX537 Volksbank Wien AG in its function as the central organisation pursuant to Article 30a BWG on the basis of the consolidated situation of the Volksbanken Verbund consolidated 529900D4CD6DIB3CI904 Institution Erste Group Bank AG Raiffeisen Bank International AG UniCredit Bank Austria AG BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft Basis individual individual individual individualLEI PQOH26KWDF7CG10L6792 9ZHRYM6F437SQJ6OUG95 D1HEB8VEU6D9M8ZUXG17 529900ICA8XQYGIKR372 Raiffeisenlandesbank Oberösterreich Aktiengesellschaft RAIFFEISENLANDESBANK NIEDERÖSTERREICH-WIEN AG Erste Bank der oesterreichischen Sparkassen AG individual individual individual I6SS27Q1Q3385V753S50 529900GPOO9ISPD1EE83 549300HUKIA1IZQHFZ83
2.2 Level of the buffer applied

Date of template version: 2016-03-01

1/3

Erste Group Bank AG Raiffeisen Bank International AG UniCredit Bank Austria AG*

01.01.2019

01.01.2020

BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft Raiffeisenlandesbank Oberösterreich Aktiengesellschaft

RAIFFEISEN-HOLDING NIEDERÖSTERREICH-WIEN registrierte Genossenschaft mit beschränkter Haftung

Volksbank Wien AG RAIFFEISENLANDESBANK NIEDERÖSTERREICH-WIEN AG

Erste Bank der oesterreichischen Sparkassen AG

2.00% 2.00% 2.00% 1.00% 1.00% 1.00% 0.50% 1.00% 0.50%

2.00% 2.00% 2.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

* As a result of the currently prescribed capital buffer for global systemically important institutions (G-SIIs) for UniCredit S.p.A. of 1%, the O-SII buffer level to be observed by UniCredit Bank Austria AG is limited to 1%. A higher capital buffer (one of a maximum of 2%) shall only apply for UniCredit Bank Austria AG, in the event that such a buffer is consistent w ith the approach taken by the designated authority for UniCredit S.p.A. (Banca d'Italia).

Institution

UniCredit Bank Austria AG

Ultimate EU parent UniCredit S.p.a.

LEI 549300TRUWO2CD2G5692

Raiffeisenlandesbank Oberösterreich Aktiengesellschaft

Raiffeisenbankengruppe 529900XSTAE561178282 OÖ Verbund

BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft

BAWAG Group AG

529900S9YO2JHTIIDG38

2.4 Names of subsidiaries

N/A

The expected date of publication will be in December 2018.

• 3.3 Disclosure

  The amended Capital Buffer Regulation and the identified institutions will be published after the decision on 13 December 2018 on the FMA website.

• 3.4 Timing of

Application

01.01.2019

• 3.5 Phasing in

  See 2.2.

  November 2019

(Article 131.3)	Consolidated Institution Size ImportanceComplexity/ Cross-borde rInter-connectednessOverall Score Erste Group Bank AG Raiffeisen Bank International AG UniCredit Bank Austria AG 2.386 1.464 1.110 2.455 1.368 1.357 3.195 2.754 1.050 1.611 1.373 1.205 2.412 1.740 1.181 BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft Raiffeisenlandesbank Oberösterreich Aktiengesellschaft 500 840 507 469 579 429 334 344 760 467 RAIFFEISEN-HOLDING NIEDERÖSTERREICH-WIEN registrierte Genossenschaft mit beschränkter Haftung Volksbank Wien AG 286 275 227 402 214 73 514 74 310 206 Individual Institution Size ImportanceComplexity/ Cross-borderInter-connectednessOverall Score Erste Group Bank AG Raiffeisen Bank International AG UniCredit Bank Austria AG 663 601 1.073 646 645 1.301 2.179 1.382 1.052 1.906 1.443 1.298 1.348 1.018 1.181 BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft Raiffeisenlandesbank Oberösterreich Aktiengesellschaft RAIFFEISENLANDESBANK NIEDERÖSTERREICH-WIEN AG 384 715 357 435 473 Erste Bank der oesterreichischen Sparkassen AG 366 264 273 289 232 261 320 200 44 729 499 176 426 299 188
4.2 Methodology and indicators used for designation of the O-SII (Article 131.3)	Please provide information on: a. whether you followed the EBA guidelines on the assessment of O-SIIs: YES b. which threshold score has been set to identify O-SIIs: 275 c. which overall score is attributed to the O-SIIs: see 4.1. d. which of the optional indicators have been used to justify supervisory assessment decisions, if any, and what are the scores: Deposits guaranteed under deposit guarantee system with threshold of 350 (3.5 %) e. why these optional indicators are relevant for the Member State: Especially institutions with a high degree of guaranteed deposits can cause severe burden or overloading of the financial system in the case of financial difficulties. f. why the bank is systemically important in terms of those particular optional indicators: Threshold of 350 scores is exceeded g. whether relevant entities with relative total assets not in excess of 0.02% have been excluded from the identification process: NO h. names and scores of all relevant entities not excluded from the identification process (could be sent in a separate excel file, see 4.1) i. whether non-bank institutions have been included in the calculations: NO
4.3 Supervisory judgement	2 institutions have been identified through supervisory judgement (deposits guaranteed under deposit guarantee system with threshold of 350 scores): - Volksbank Wien AG (on consolidated basis of Volksbanken Verbund pursuant to Article 30a Austrian Banking Act) - Erste Bank der oesterreichischen Sparkassen AG (individual basis)
4.4 Calibrating the O-SII buffer	With regard to the calibration methodology FMA and OeNB established three buckets with different buffer rates dependent on the score whereas every identified institution has to hold an O-SII buffer of at least 1 %: Subcategory Bucket 3 Bucket 2 Bucket 1 O-SII Buffer 2.0 % CET1 1.5 % CET1 1.0 % CET1 Scores ≥ 1.000 637 - 999 275 - 636
The subcategories enable to differentiate the institutions depending on the score. In particular the difference between EGB, RBI UniCredit Bank Austria and all other identified institutions is very large and could be considered in the best way possible by the calibration. Institutions, which are identified via supervisory judgement, are assigned to Bucket 1.
4.5 Effectiveness and proportionality of measure	The O-SII buffer aims to increase the risk-bearing capacity of the systemically important institutions in Austria. However in Austria a systemic risk buffer has been implemented since the beginning of 2016 and the higher of the respective systemic risk buffer and O-SII buffer shall be applied. In the currently prevailing case, this is the systemic risk buffer except for Erste Bank der oesterreichischen Sparkassen and RAIFFESENLANDESBANK NIEDERÖSTERREICH-WIEN on an individual basis (no SyRB).
5. Cross-border and cross-sector impact of the measure
5.1 Assessment of cross-border effects and the likely impact on the internal market (Recommendation ESRB/2015/2)	In line with the findings on the economic impact of the systemic risk buffer at the national level, cross-border effects are expected to be marginally positive.
5.2 Assessment of leakages and regulatory arbitrage within the notifying Member State	N/A
6. Combinations and interactions with other measures
6.1 Combinations between G-SII and O-SII buffers (Article 131.14)	N/A
6.2 Combinations with SRB buffers (Article 131.14 + Article 133.5)	Are any of the institutions subject to a systemic risk buffer? YES If yes, please provide the following information: a. What is the level of the systemic risk buffer (in %) applied to the concerned institution consolidated 01.01.2019 01.01.2020 Erste Group Bank AG Raiffeisen Bank International AG UniCredit Bank Austria AG Raiffeisenlandesbank Oberösterreich Aktiengesellschaft 2,00% 2,00% 2,00% 1,00% 2,00% 2,00% 2,00% 1,00% RAIFFEISEN-HOLDING NIEDERÖSTERREICH-WIEN registrierte Genossenschaft mit beschränkter Haftung 1,00% 1,00% BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft Volksbank Wien AG 1,00% 0,50% 1,00% 1,00%
individual basis Erste Group Bank AG Raiffeisen Bank International AG UniCredit Bank Austria AG Raiffeisenlandesbank Oberösterreich Aktiengesellschaft 01.01.2019 01.01.2020 2,00% 2,00% 1,00% 1,00% 2,00% 2,00% 1,00% 1,00% b. Is the systemic risk buffer applied to all exposures located in your Member State only? NO, the SRB is applied to all exposures. c. Is the systemic risk buffer applied at the same consolidation level as the O-SII buffer? YES
6.3 O-SII requirement for a subsidiary (Article 131.8)	In case the O-SII is a subsidiary of an EU parent institution which is subject to a G-SII or O-SII buffer on a consolidated basis, what is the G-SII or O-SII buffer rate on a consolidated basis of the parent institution? UniCredit S.p.a.: G-SII / O-SII buffer 1 % For details pls see the decision of the Banca d'Italia.
6.4 Interaction with other measures	N/A

7. Miscellaneous
7.1 Contact person(s) at notifying authority	Roland Salomon ([e-mail]) Lucas Grafl ([e-mail]) Alexander Gruber ([e-mail])
7.2 Any other relevant information	N/A