(1) The Federal Ministry of Finance is empowered, by statutory instrument not requiring the consent of the Bundesrat, in consultation with the Deutsche Bundesbank, in the interest of appropriately protecting institutions, institutional groups, financial holding groups, and mixed financial holding groups from concentration risks, to issue, in supplementation of Regulation (EU) No 575/2013, more detailed rules for large exposures concerning
1. the managers' duty to pass resolutions under subsection (2), and exceptions thereto,
2. the type, scope, timing, and form of the particulars, transmission channels, and data formats of the large-exposure master-data notifications and their acknowledgements in the course of the large-exposure reporting procedure under Article 394(1) to (3) of Regulation (EU) No 575/2013, and
3. implementing the exemption of certain loans from the application of Article 395(1) of Regulation (EU) No 575/2013, as amended from time to time, permitted by Article 493(3) of Regulation (EU) No 575/2013, as amended from time to time. The Federal Ministry of Finance may, by statutory instrument, transfer the power to the Federal Institute, on the condition that the statutory instrument is issued in agreement with the Deutsche Bundesbank. Before issuing the statutory instrument, the institutions' umbrella associations must be heard.
(2) An institution in the legal form of a legal person or a commercial partnership may, without prejudice to the validity of the legal transactions, grant a large exposure only on the basis of a unanimous resolution of all its managers. The resolution should be passed before the loan is granted. Where this is not possible in an individual case owing to the urgency of the transaction, the resolution must be passed without delay afterwards. The resolution must be documented. Where the large exposure has been granted without a prior unanimous resolution of all managers, and the resolution is not passed within one month of the loan being granted, the institution must notify this without delay to the supervisory authority, the Deutsche Bundesbank, and, where the supervisory authority is the European Central Bank, also to the Federal Institute. Where a loan already granted becomes a large exposure as a result of a reduction in Tier 1 capital under Article 25 of Regulation (EU) No 575/2013 not attributable solely to a change in the legal framework applicable to own funds, the institution may, without prejudice to the validity of the legal transaction, continue to grant this large exposure only on the basis of a unanimous resolution of all managers, to be passed without delay afterwards. The resolution must be documented. Where the resolution is not passed within one month of the date on which the loan became a large exposure, the institution must notify this without delay to the supervisory authority, the Deutsche Bundesbank, and, where the supervisory authority is the European Central Bank, also to the Federal Institute.
(3) The duties to pass resolutions under subsection (2) apply correspondingly to the parent undertaking where an undertaking of the institutional group, the financial holding group, or the mixed financial holding group makes use of Article 7 of Regulation (EU) No 575/2013.
(4) For loans from public promotional funds that the promotional institutions of the Federal Government and the Länder channel to final borrowers via relationship banks at predetermined terms, on the basis of independent loan agreements, where applicable also via further conduit institutions (relationship-bank principle), the individual final borrowers may, for the institutions involved, be treated as the borrowers of the interbank loan granted by them, for the purposes of applying Article 395(1) of Regulation (EU) No 575/2013, where the loan claims are assigned to them as security. This applies correspondingly to interest-subsidised loans of the promotional institutions from their own or public funds under the relationship-bank principle (own-funds programmes), and to loans from non-public funds that a credit institution channels to final borrowers under statutory requirements, where applicable also via further conduit institutions, via relationship banks.
Sections 13a and 13b
(repealed)