Solvency Regulation
| Basic data | |
|---|---|
| Title: | Ordinance on the adequate capital adequacy of institutions, groups of institutions and financial holding groups |
| Short title: | Solvency Regulation |
| Abbreviation: | SolvV |
| Type: | Federal Ordinance |
| Scope: | Federal Republic of Germany |
| Issued on the basis of: | Section 10 , Section 10a KWG |
| Legal matter: | Commercial administrative law |
| References : | 7610-2-39 |
| Issued on: | December 14, 2006 ( BGBl. I p. 2926 ) |
| Entry into force on: | January 1, 2007 |
| Last change by: |
Art. 1 Regulation of 19 February 2019 ( Federal Law Gazette I, p. 122 ) |
| Effective date of the last change: |
February 28, 2019 (Art. 2 of February 19, 2019) |
| GESTA : | D014 |
| Please note the note on the applicable legal version. | |
The Solvency Ordinance (SolvV - Ordinance on the adequate capital adequacy of institutions, groups of institutions and financial holding groups) is a statutory ordinance of the Federal Ministry of Finance of December 14, 2006 within the framework of banking supervisory law . It specifies the requirements of Section 10 ff. Of the German Banking Act on adequate equity capital ( solvency ) and liquidity . An ordinance of the same name with a comparable regulatory purpose also exists in Austrian supervisory law.
Old Solvency Ordinance of December 14, 2006
The Solvency Ordinance of December 14, 2006 came into force on January 1, 2007 and completely replaced the previous “ Principle I ” and “ Principle Ia ” on the institutions' minimum equity . Principle I, however, partly continued to apply until the end of 2007 due to transitional provisions. The reason for the revision of the regulations was the international agreement on the minimum equity capital of credit institutions, which was met on June 26, 2004 in Basel (" Basel II "). In the form of the Equity Capital Directive, the Basel II regulations have been incorporated into a joint EU directive, which forms the basis of the Solvency Regulation. The Solvency Ordinance covers the first and third pillars of "Basel II", while the second pillar in Germany is taken over as part of the minimum requirements for risk management .
The Solvency Ordinance regulates in detail in 340 paragraphs how the credit institutions must quantify their counterparty risks , their operational risk and their market price risks , back them up with own funds and disclose this data . The market price risk is made up of the interest rate and share price risk in the trading book , the foreign currency risk, the commodity risk and other market price risks. For backing counterparty risks and operational risk, only core and supplementary capital may be used, and third-tier funds may also be used for market price risks. The required total capital ratio was at least 8 percent. The Solvency Ordinance divided risk-weighted assets into risk classes , laid down requirements for the recognition of rating agencies and, alternatively, also enabled bank-internal rating procedures, for which quality requirements had to be met.
Solvency Ordinance of December 6, 2013
With the reorganization of the banking supervisory regulations as part of the so-called CRD-IV package, the requirements contained in the Solvency Ordinance on the appropriate capital adequacy of institutions, groups of institutions, financial holding groups and mixed financial holding groups have been implemented by the regulation (EU ) No. 575/2013 (Capital Adequacy Ordinance) has been replaced.
To implement these provisions, the Solvency Ordinance, amended on January 1, 2014, regulates in 39 paragraphs the procedure for the application and notification obligations set out in Regulation (EU) No. 575/2013, including the regular reporting obligations, in particular the form in which applications are to be submitted and to whom notifications and reports to be sent to BaFin are to be submitted. In addition, the Solvency Ordinance regulates those details for which the Capital Adequacy Ordinance gives the competent authorities leeway, for example for the duration and details of the requirements for the implementation of the IRB approach or which are specified by the Equity Directive and therefore had to be implemented in national law. The new Solvency Ordinance also clarifies the requirements that a mortgage lending value that can be considered for the purposes of the Capital Adequacy Ordinance must meet, since the Capital Adequacy Ordinance only permits the use of a mortgage lending value for real estate when determining the risk weights and risk exposure values of real estate loans in those member states that or administrative regulations have stipulated strict requirements for its measurement. In addition, the new Solvency Regulation specifies some provisions on the transitional rules in connection with the introduction of the new capital requirements and the calculation of the new capital buffers.
Legal policy
The validity of the Delegated Regulation (EU) 2018/171 since May 7, 2018 requires an adjustment of Section 16 SolvV to the so-called materiality threshold for risk positions .
literature
- Beck, Samm, Kokemoor: Law on the Credit System . KWG commentary with materials and additional regulations. CF Müller, Heidelberg [loose-leaf collection, 134th update December 2008], ISBN 978-3-8114-5670-9
- Dirk Zoepffel: Secure loan protection instruments in the context of Basel II: Practical information on SolvV
Individual evidence
- ↑ Federal Law Gazette I p. 2926
- ↑ CRD IV: New regulatory package for banks in force BaFin website , January 2, 2014
- ↑ Regulation (EU) No. 575/2013 of June 26, 2013, Official Journal L 176/1.
- ↑ Basel III - a milestone in banking supervisory law, website of the Federal Ministry of Finance , monthly report, October 21, 2013
- ↑ BGBl. I p. 4168
- ^ Deutsche Bundesbank : The implementation of Basel III in European and national law Monthly report June 2013, p. 71 f.
- ↑ Delegated Regulation (EU) of the Commission of October 19, 2017 to supplement Regulation (EU) No. 575/2013 of the European Parliament and of the Council with regulatory technical standards with regard to the materiality threshold for overdue liabilities OJ. L 32/1 of February 6, 2018
- ↑ Referent draft of the Federal Financial Supervisory Authority : Draft for a second regulation amending the Solvency Regulation , as of September 20, 2018
- ↑ Significance threshold: BaFin consults Amendment Ordinance website of BaFin, 25 September 2018
- ↑ Consultation 16/2018 of the ordinance amending section 16 of the Solvency Ordinance (SolvV) website of BaFin, 25 September 2018
