Management von Risk Weighted Assets bei österreichischen Banken, in Hinblick auf Immobilienfinanzierungen

Abstract

The aim of this bachelor thesis is to examine how Austrian banks deal with risk-weighted assets (RWA), particularly in relation to the financing of property. RWA form the basis for the calculation of regulatory capital requirements and reflect the risk of individual assets. Higher risks lead to higher risk weightings and greater capital requirements. The regulatory requirements for banks are largely based on the international Basel guidelines, which are embedded in national law via the EU regulation CRR (Capital Requirements Regulation). The Basel III and Basel IV regulations have further tightened the capital requirements. Basel IV in particular limits the use of internal valuation models through the socalled output floor, which means that banks must comply with a minimum capital backing regardless of their actual risk assessment. Property financing plays a central role in the Austrian banking sector. While private residential construction loans with solid collateralisation are considered to be rather low-risk, project financing - such as property development projects - is subject to significantly higher requirements. These are assigned high risk weightings across the board, regardless of location or credit rating, which poses a particular challenge for smaller institutions focussing on regional financing. The analysis of the RWA structures of Erste Group, Raiffeisen Bank International and Oberbank illustrates the differences in their risk management: large banks use complex internal models requiring approval for more precise risk assessment, while smaller banks mostly use the standardised approach, which leads to more conservative risk assessments and higher capital requirements. The reason for this is that smaller banks do not even have the possibilities of those rating and calculation models that larger banks have. Another focus is on measures to optimise the use of equity. Strategies such as targeted loan structuring (e.g. through covenants), alternative forms of financing (such as mezzanine capital) or off-balance sheet securitisations are becoming increasingly important. In addition, sustainability criteria (ESG) are increasingly influencing risk management and could also be incorporated into the RWA valuation in future. In conclusion, it can be said that the current regulatory developments are having a profound impact on the property financing business. For Austrian banks, this means managing equity more efficiently, observing regulatory limits and adapting their credit strategies accordingly.

Date of Award	2025
Original language	German (Austria)
Supervisor	Michael Leimer (Supervisor)