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and (EU) 2017/2402 to credit and financial service institutions .......................................14 § 1b (repealed) .................................................................................................15 § 2 Exceptions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SUPERVISORY AUTHORITY (BUNDESANSTALT FÜR FINANZDIENSTLEISTUNGSAUFSICHT)................................... 38 § 5 (repealed) ...................................................................................................38 § 6 Tasks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 ....................................