Banking Act (Gesetz über das Kreditwesen)

Banking Act (Gesetz über das Kreditwesen)
Revised Reading Version
Non-Official Text
In the version published on September 9, 1998, Federal Law Gazette Part I p. 2776,

• last amended by Article 3 of the Act on the Establishment of an Economic Stabilization Fund (Economic Stabilization Fund Act – WStFG) of
  March 27, 2020, Federal Law Gazette Part I p. 543 Status: March 27, 2020

I
Table of Contents
FIRST SECTION............................................................................1
GENERAL PROVISIONS............................................................1

1. CREDIT INSTITUTIONS, FINANCIAL SERVICE INSTITUTIONS, FINANCIAL HOLDING COMPANIES, MIXED FINANCIAL HOLDING COMPANIES AND MIXED HOLDING COMPANIES AS WELL AS FINANCIAL ENTERPRISES ..................................... 1
   § 1 Definitions ...................................................................................... 1
   § 1a Applicability of Regulations (EU) No 575/2013, (EC) No 1060/2009 and (EU) 2017/2402 to credit and financial service institutions .......................................14
   § 1b (repealed) .................................................................................................15
   § 2 Exceptions .....................................................................................................15
   § 2a Exceptions for group-affiliated institutions and institutions belonging to institutional protection schemes ............................................27
   § 2b Legal form ....................................................................................................28
   § 2c Holders of qualifying holdings ...............................................................29
   § 2d Management bodies of financial holding companies and mixed financial holding companies................................................................................33
   § 2e Exceptions for mixed financial holding companies..............................34
   § 3 Prohibited transactions.......................................................................................34
   § 4 Decision of the Federal Financial Supervisory Authority (BaFin) .................37
2. FEDERAL FINANCIAL SUPERVISORY AUTHORITY (BUNDESANSTALT FÜR FINANZDIENSTLEISTUNGSAUFSICHT)................................... 38
   § 5 (repealed) ...................................................................................................38
   § 6 Tasks .........................................................................................................38
   § 6a Special tasks .....................................................................................40
   § 6b Supervisory review and assessment ....................................................40
   § 7 Cooperation with the Deutsche Bundesbank............................................43
   § 7a Cooperation with the European Commission .....................................44

II
§ 7b Cooperation with the European Banking Authority, the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority ...................................................................................................45
§ 7c Cooperation with the European Banking Committee ..........................49
§ 7d Cooperation with the European Systemic Risk Board..........49
§ 8 Cooperation with other bodies ..............................................................49
§ 8a Special tasks in consolidated supervision............54
§ 8b (repealed) .................................................................................................56
§ 8c Transfer of competence for the supervision of institution groups, financial holding groups, mixed financial holding groups and group-affiliated institutions ..................................................................................56
§ 8d (repealed) .................................................................................................57
§ 8e Supervisory colleges ..........................................................................................57
§ 8f Cooperation in the supervision of significant branches....59
§ 9 Duty of confidentiality .................................................................................60
SECOND SECTION ........................................................................63
PROVISIONS FOR INSTITUTIONS, INSTITUTION GROUPS, FINANCIAL HOLDING GROUPS, MIXED FINANCIAL HOLDING
GROUPS AND MIXED HOLDING COMPANIES...........63

1. OWN FUNDS AND LIQUIDITY ............................................................................ 63
   § 10 Supplementary requirements for the own funds of institutions, institution groups, financial holding groups and mixed financial holding groups;
   authorization to issue regulations.....................................................................................63
   § 10a Calculation of the own funds of institution groups, financial holding
   groups and mixed financial holding groups; authorization to issue regulations .....69
   § 10b (repealed) ...............................................................................................73
   § 10c Capital conservation buffer ................................................................................73
   § 10d Countercyclical capital buffer..........................................................................74
   § 10e Capital buffer for systemic risks ..........................................................76
   § 10f Capital buffer for globally system-relevant institutions..........................................79
   § 10g Capital buffer for other system-relevant institutions ................................81

III
§ 10h Interaction of the capital buffers for systemic risks, for globally
system-relevant institutions and for other system-relevant institutions ................83
§ 10i Combined capital buffer requirement .........................................................84
§ 11 Liquidity ........................................................................................................87
§ 12 (repealed) .................................................................................................88
§ 12a Establishment of corporate relationships ..............................................88
2. CREDIT TRANSACTIONS ............................................................................................. 89
§ 13 Large exposures; authorization to issue regulations ........................................................89
§ 13a (repealed) ...............................................................................................91
§ 13b (repealed) ...............................................................................................91
§ 13c Group-internal transactions with mixed holding companies ........91
§ 13d (repealed) ...............................................................................................92
§ 14 Million-euro credits..............................................................................................92
§ 15 Organ credits..................................................................................................94
§ 16 (repealed) .................................................................................................96
§ 17 Liability provisions.....................................................................................96
§ 18 Credit documents ............................................................................................97
§ 18a Consumer loans and paid financing aids;
authorization to issue regulations.....................................................................................97
§ 18b (repealed) .............................................................................................100
§ 19 Definition of credit for § 14 and of the borrower for §§ 14, 15 and 18
............................................................................................................................100
§ 20 Exceptions from the obligations under § 14..........................................102
§ 20a (repealed) .............................................................................................103
§ 20b (repealed) .............................................................................................103
§ 20c (repealed)..............................................................................................103
§ 21 Definition of credit for §§ 15 to 18 ........................................................103
§ 22 Authorization to issue regulations for million-euro credits ............................................105
2A. REFINANCING REGISTER ........................................................................... 106
§ 22a Register-keeping company ...............................................................106
§ 22b Maintenance of the refinancing register for third parties........................................107

IV
§ 22c Refinancing intermediaries ...............................................................................107
§ 22d Refinancing register.............................................................................107
§ 22e Appointment of the administrator..........................................................................109
§ 22f Relationship of the administrator to BaFin ..............................................110
§ 22g Tasks of the administrator...........................................................................110
§ 22h Relationship of the administrator to the register-keeping company and to the
refinancing company..............................................................................110
§ 22i Remuneration of the administrator...........................................................................111
§ 22j Effects of entry in the refinancing register..........................111
§ 22k Termination and transfer of register maintenance ....................................112
§ 22l Appointment of the liquidator upon opening of insolvency proceedings...........112
§ 22m Publication of the appointment of the liquidator....................................113
§ 22n Legal status of the liquidator ................................................................113
§ 22o Appointment of the liquidator in case of insolvency risk .......................................114
3. CUSTOMER RIGHTS ............................................................................................. 115
§ 22p (repealed) .............................................................................................115
4. ADVERTISING AND INFORMATION OBLIGATIONS OF INSTITUTIONS ........................................... 115
§ 23 Advertising......................................................................................................115
§ 23a Deposit guarantee scheme ...............................................................................115
5. SPECIAL OBLIGATIONS OF INSTITUTIONS, THEIR MANAGEMENT DIRECTORS AS WELL AS THE
FINANCIAL HOLDING COMPANIES, THE MIXED FINANCIAL HOLDING
COMPANIES AND THE MIXED HOLDING COMPANIES................ 116
§ 24 Notifications......................................................................................................116
§ 24a Establishment of a branch and provision of cross-border
services in other states of the European Economic Area..........122
§ 24b Participation in payment and securities delivery and settlement systems
as well as interoperable systems...........................................................................125
§ 24c Automated retrieval of account information ...........................................126
§ 25 Financial information, information on risk-bearing capacity;
authorization to issue regulations...................................................................................128

V
§ 25a Special organizational obligations, provisions for risk takers;
authorization to issue regulations...................................................................................129
§ 25b Outsourcing of activities and processes; authorization to issue regulations...134
§ 25c Management directors...........................................................................................135
§ 25d Administrative or supervisory body .............................................................141
§ 25e Requirements for contractually bound intermediaries.............................146
§ 25f Special requirements for the proper business organization of CRR credit institutions as well as of institution groups, financial holding groups and mixed financial holding groups, to which a CRR credit institution belongs;
authorization to issue regulations...................................................................................147
5A. CASHLESS PAYMENTS; PREVENTION OF MONEY LAUNDERING, TERRORISM FINANCING AND OTHER CRIMINAL OFFENCES TO
THE DETRIMENT OF INSTITUTIONS ................................................................................... 148
§ 25g Compliance with special organizational obligations in cashless
payments..................................................................................................148
§ 25h Internal security measures.................................................................149
§ 25i General duty of care regarding e-money .....................................150
§ 25j Time of identity verification.............................................................151
§ 25k Enhanced due diligence requirements ......................................................................152
§ 25l Money laundering obligations for financial holding companies..............152
§ 25m Prohibited transactions................................................................................152
§ 25n Classification as a significant institution ...........................................................153
5B. SUBMISSION OF ACCOUNTING DOCUMENTS ........................................... 154
§ 26 Submission of annual financial statements, management reports and audit reports...............154
5C. DISCLOSURE ............................................................................................... 155
§ 26a Disclosure by the institutions ..................................................................155

VI
6. AUDIT AND APPOINTMENT OF AUDITORS ................................................................ 156
§ 27 (repealed) ...............................................................................................156
§ 28 Appointment of the auditor in special cases...............................................156
§ 29 Special obligations of the auditor..................................................................157
§ 30 Determination of audit contents...............................................................160
7. EXEMPTIONS................................................................................................. 161
§ 31 Exemptions; authorization to issue regulations......................................................161
THIRD SECTION.......................................................................163
PROVISIONS ON THE SUPERVISION OF INSTITUTIONS
............................................................................................................163

1. AUTHORIZATION TO CARRY ON BUSINESS ............................................................. 163
   § 32 Authorization......................................................................................................163
   § 33 Refusal of authorization .............................................................................168
   § 33a Suspension or restriction of authorization for companies with seat
   outside the European Union .....................................................................172
   § 33b Consultation of the competent authorities of another state of the European
   Economic Area.................................................................................................172
   § 34 Representation and continuation in the event of death ..............................................173
   § 35 Expiration and revocation of authorization......................................................173
   § 36 Measures against management directors and members of the administrative or
   supervisory body ...................................................................................................175
   § 36a Prohibition on activities for natural persons....................................................177
   § 37 Intervention against unauthorized or prohibited transactions...........................178
   § 38 Consequences of revocation and expiration of authorization, measures in
   resolution ....................................................................................................179

VII
2. PROTECTION OF DESIGNATIONS ................................................................................... 180
§ 39 Designations "Bank" and "Bankier"..........................................................180
§ 40 Designation "Sparkasse"............................................................................180
§ 41 Exceptions .................................................................................................181
§ 42 Decision of BaFin .................................................................181
§ 43 Register provisions.....................................................................................181
3. INFORMATION AND INSPECTIONS.......................................................................... 182
§ 44 Information and inspections of institutions, providers of ancillary services, financial holding companies, mixed financial holding
companies and other companies.........................................................182
§ 44a Cross-border information and inspections.......................................184
§ 44b Information and inspections regarding holders of qualifying holdings...........185
§ 44c Pursuit of unauthorized banking business and financial services ..........185
4. MEASURES IN SPECIAL CASES.............................................................. 187
§ 45 Measures to improve own funds and liquidity
............................................................................................................................187
§ 45a Measures against financial holding companies and mixed
financial holding companies..............................................................................192
§ 45b Measures in case of organizational deficiencies .............................................193
§ 45c Special commissioner....................................................................................194
§ 46 Measures in case of danger...............................................................................196
§ 46a Prohibition and order powers regarding the use of external ratings198
§ 46b Application for insolvency .........................................................................................198
§ 46c Insolvency-related time limits and liability issues.........................................199
§ 46d Information to other states of the European Economic Area about
recovery measures ......................................................................................200
§ 46e Insolvency proceedings in the states of the European Economic Area ...201 § 46d Information to creditors in insolvency proceedings and insolvency ranking
............................................................................................................................202
§ 46g Moratorium, suspension of banking and stock exchange business............................204
§ 46h Resumption of banking and stock exchange business ......................................205

VIII
§ 47 Order power under Regulation (EU) No 1286/2014 ..................205
§ 48 Measures in case of violations of Regulation (EU) 2017/2402............205
4A. MEASURES AGAINST CREDIT INSTITUTIONS IN CASES OF DANGER TO THE STABILITY
OF THE FINANCIAL SYSTEM ...................................................................................... 206
§§ 48a to 48s (repealed) ...............................................................................206
§ 48t Measures to limit macroprudential or systemic risks
............................................................................................................................206
§ 48u Measures to limit macroprudential risks in the area of lending for the construction or acquisition of residential real estate;
authorization to issue regulations...................................................................................208
5. ENFORCEABILITY, COERCIVE MEASURES, LEVY AND COSTS ............................... 211
§ 49 Immediate enforceability ..............................................................................211
§ 50 (repealed) ...............................................................................................211
§ 51 Levy and costs .....................................................................................211
FOURTH SECTION.......................................................................213
SPECIAL PROVISIONS FOR HOUSING ENTERPRISES
WITH SAVINGS FACILITIES ..................................................................213
§ 51a Requirements for the equity capital of housing enterprises
with savings facilities..............................................................................................213
§ 51b Requirements for the liquidity of housing enterprises with
savings facilities ...................................................................................................215
§ 51c Other special provisions for housing enterprises with savings facilities
............................................................................................................................216
FIFTH SECTION......................................................................217
SPECIAL PROVISIONS.................................................................217
§ 52 Special supervision.............................................................................................217
§ 52a Statute of limitations for claims against organizational members of credit institutions...217
§ 53 Branches of companies with seat abroad.....................................217
§ 53a Representative offices of institutions with seat abroad....................................219

IX
§ 53b Companies with seat in another state of the European
Economic Area.................................................................................................219
§ 53c Companies with seat in a third state; authorization to issue regulations........225
§ 53d Parent companies with seat in a third state..........................................225
SIXTH SECTION...................................................................227
SPECIAL PROVISIONS FOR CENTRAL COUNTERPARTIES AND
CENTRAL SECURITIES DEPOSITARIES....................................................................227

1. CENTRAL COUNTERPARTIES ............................................................................ 227
   § 53e Holders of qualifying holdings ...........................................................227
   § 53f Supervisory colleges .......................................................................................227
   § 53g Financial resources of central counterparties...............................227
   § 53h Liquidity ....................................