National Bank of Austria

Claire Jones

Austria on Monday became the first country in the eurozone, and one of only a handful across the globe, to say it would fast track compliance with the Basel III capital rules.

With a eurozone recession imminent and Austrian lenders exposed to woes further east, it appears odd to heap pressure on banks to comply with rules six years ahead of their rivals elsewhere.

To boot, Austria will also introduce an additional capital buffer early. And the buffer will be set between 2-3 per cent dependent on the risks inherent in banks’ business models, higher than the 1-2.5 per cent specified in the Basel III framework.

Is Austria getting too tough too soon? Read more