Joint Information Sheet of BaFin and Deutsche Bundesbank on the Million Credit Reporting Procedure for Factoring and Financial Leasing Institutes

Joint Information Sheet of the Federal Financial Supervisory Authority (BaFin) and the Deutsche Bundesbank on the Million Credit Reporting Procedure for Factoring and Financial Leasing Institutes

Since December 25, 2008, factoring and financial leasing have been classified as licensed financial services within the meaning of the German Banking Act (KWG).

Due to a correction of Section 14(1) of the KWG within the framework of the Act for the Implementation of the Supervisory Law Provisions of the Payment Services Directive, factoring and financial leasing institutes will henceforth submit paperless million credit reports to the Evidence Center of the Deutsche Bundesbank quarterly on the 15th of January, April, July, and October.

With the entry into force of the amendment to Section 14(1) of the KWG, million credit reports based on the reporting date of June 30, 2009, are to be created for the first time and submitted by July 15, 2009.

The legislative objective in the Annual Tax Act 2009 and the legal rationale of Section 64j KWG, which aim to introduce supervision as gently as possible and, against the backdrop of the overall economic situation, to keep the burden on factoring and financial leasing institutes as low as possible during the introductory phase, must also be taken into account here.

After consultation with the Federal Ministry of Finance, the Federal Financial Supervisory Authority (BaFin) and the Deutsche Bundesbank consider it justified, in the spirit of "supervision with a sense of proportion," to issue a reprimand for the non-reporting of million credits for the first time on the submission date of January 15, 2010. However, the affected institutes are free to submit million credit reports in accordance with Section 14 of the KWG on the submission dates of July 15, 2009, and October 15, 2009.

Due to numerous inquiries regarding the basis for calculating the reports, it is pointed out that the book value is to be reported in accordance with Section 2(1) of the Large Credit and Million Credit Ordinance (GroMiKV).

Financial companies within the meaning of Section 1(3) Sentence 1 No. 2 of the KWG, which are already subject to a reporting obligation, cannot avail themselves of the aforementioned relief. The same applies to group-affiliated companies already subject to notification obligations within the meaning of Section 14(1) Sentence 4 of the KWG.

1 Section 8(1) Sentence 1 of the Ordinance on the Recording, Calculation, Weighting, and Notification of Credits in the Area of Large Credit and Million Credit Provisions of the Banking Act (GroMiKV).
2 Section 74(2) Sentence 2 of the GroMiKV.