KA Finanz AG was established on 28 November 2009 through the demerger of the former Kommunalkredit; it is the legal successor of the latter and fully owned by the Republic of Austria. In accordance with the restructuring plan approved by the Directorate-General for Competition of the European Commission (EC) on 31 March 2011, KA Finanz AG is responsible for the structured wind-down of the non-strategic loan, securities and CDS portfolio.
On 6 September 2017, the Financial Market Authority (FMA) approved the conversion of KA Finanz AG into a wind-down unit pursuant to Sect. 162 of the Bank Recovery and Resolution Act. As of that date, KA Finanz AG surrendered its banking license. As a wind-down unit, KA Finanz AG will continue to be supervised by FMA.
In accordance with the wind-down plan, the business activities of KA Finanz AG are concentrated on the targeted reduction of risk positions as well as on realising the maximum potential for the reversal of impairments and securing an adequate level of liquidity. There will be no expansion of the asset-side volume of business. In line with the objectives of a wind-down unit, funding for KA Finanz AG is to be provided by ABBAG (Abbaumanagementgesellschaft des Bundes), a company wholly owned by the Republic of Austria and responsible for the management of wind-down entities. KA Finanz AG will no longer raise new funding on the money and capital markets.