Million dollar loan
Under million loan is understood in banking loans to a borrower or borrower unit whose credit volume one million euros is or more.
history
There has been an obligation to report millions of loans since the first Banking Act, which came into force in December 1934. The notification requirements were regulated in Sections 3–7 KWG and the registration center in Section 8 KWG. It turned out that in the context of the global economic crisis the banks were often not sufficiently informed about the total indebtedness of their large borrowers and often got into trouble themselves when such companies collapsed. The current Banking Act, which came into force in January 1962, initially provided for a reporting threshold of DM 1 million or more in Section 14 (1) KWG. From July 1986, the observation period extended from two to three months. In January 1993, the million euro credit reporting limit was raised to three million DM. In January 2002 it was set at 1.5 million euros as part of the changeover to euros. Since January 1, 2015, it has now been 1 million euros or more.
In the past, in addition to the changes in the reporting threshold, there were in particular increases in the scope of the loans to be reported in accordance with Section 19 (1) KWG. Accordingly, balance sheet assets , derivatives with the exception of the option writer obligations as well as the warranties assumed and other off-balance sheet transactions must be reported . The exceptions according to § 20 KWG (advance payments from foreign exchange and securities trading as well as floats in payment transactions ) are not to be reported . The main exceptions of section 20 (6) KWG a. F. ( municipal loans) were deleted from January 2012, so that loans to the federal government , federal states , municipalities and associations of municipalities are subject to the reporting requirement under Section 14 KWG.
Since January 1, 2014, a separate definition of borrower units has been created for loans in the millions in Section 19 (2) KWG. It aims Although primarily on the concept of a direct or indirect controlling interest and the group affiliation of a borrower, but also summarizes - unlike the group of connected clients - already have parties from fractions of 50% together.
requirements
The provision of the current § 14 KWG requires the affected banks a report to the central registry of the Deutsche Bundesbank . This means that loans whose volume has reached or exceeded one million euros or more ("million euro reporting limit") to the borrowers recorded ("million borrowers") at any time during the three calendar months preceding the reporting date ("observation period") or exceeded ("reporting threshold") in accordance with Section 15 (1) No. 2 GroMiKV ), in order to record the resulting credit risk . The assessment limits of individual types of credit result from § 12 GroMiKV. The million euro credits must be reported by the 15th of January, April, July and October. What is decisive is - unlike with large loans - the current loan drawdown. According to Section 2 (2) KWG, social security agencies , the Federal Labor Office , the Reconstruction Loan Corporation and Insurance Companies are also subject to this notification requirement, even though they are not credit institutions.
feedback
If it turns out that the same borrower has been granted millions of loans by several credit institutions, the Deutsche Bundesbank must notify the reporting banks as part of a response. This notification includes information about the total indebtedness of the borrower of the borrower unit to which it belongs, the number of reporting companies and information about the forecast probability of default within the meaning of Articles 92 to 386 of Regulation (EU) No. 575/2013 for this borrower, if a bank has reported one itself. The reporting credit institutions receive a response from the registration center in the form of the registration report , which records all reported million loans of a million borrower by type of credit, so that the respective bank receives an anonymized overview of all million loans of its million borrower - with regard to the lender.
Prohibition of disclosure
The persons employed by a company that is required to report may not disclose or use information to third parties (Section 14 (2) sentence 10 KWG). Apart from the breach of banking secrecy , the unauthorized use of such data leads to fines or imprisonment according to § 55a KWG.
Purpose of the regulation
The purpose of the regulation is to record the credit risk resulting from the loan amount alone. In addition, all reporting credit institutions receive an overview of whether and to what extent their borrowers are also indebted to other credit institutions, which can increase the risk for the individual lender. Section 14 of the KWG aims to enable the banking supervisory authority to gain an insight into the risk structure of credit institutions in order to be able to draw their attention to any accumulation of risk . The Bundesbank and BaFin receive real-time insight into the credit exposures of major borrowers and lenders . The millions of credit reports also provide information about the country risks , because it also includes the total lending by German credit institutions to borrowers in a specific country.
literature
- Nikolaus Demmelmair: The large loan, million dollar and organ loan regulations, Deutscher Sparkassenverlag, 8th edition. 2018, ISBN 978-3-09-304790-9
Individual evidence
- ↑ Deutsche Bundesbank, Monthly Report August 1998, The Evidenzzentrale für millions loans at the Deutsche Bundesbank , p. 84
- ^ Alfred Jahresig / Hans Schuck, Handbuch des Kreditwesen , 2013, p. 47
- ↑ Grundmann in Großkomm. HGB , 5th edition, bank contract law 2 , 2014, p. 263
- ↑ MünchKomm BGB / Berger, § 488 Rn. 96
