Loan documents

A credit institution may grant a loan that exceeds EUR 1,500,000 in total, or 10 percent of its Tier 1 capital under Article 25 of Regulation (EU) No 575/2013 as amended on 17 June 2025, only where it has the borrower disclose its economic circumstances, in particular by submitting its annual financial statements. The credit institution may dispense with this where the requirement for disclosure would clearly be unwarranted having regard to the security provided or to the co-obligors. The credit institution may dispense with ongoing disclosure where 1. the loan is secured by a charge over residential property occupied by the borrower personally, 2. the loan does not exceed four-fifths of the mortgage lending value of the charged property within the meaning of section 16(1) and (2) of the Pfandbrief Act, and 3. the borrower makes the interest and principal payments owed by it without disruption. Disclosure is not required for loans to 1. central governments or central banks abroad, the Federal Government, the Deutsche Bundesbank, or a legally dependent special fund of the Federal Government, where they would, if unsecured, receive a Credit Risk Standardised Approach risk weight (Standardised Approach risk weight) of 0 percent, 2. multilateral development banks or international organisations, where they would, if unsecured, receive a Standardised Approach risk weight of 0 percent, or 3. regional governments or local authorities in another state of the European Economic Area, a Land, a municipality, an association of municipalities, a legally dependent special fund of a Land, a municipality, or an association of municipalities, or public-sector entities, where they would, if unsecured, receive a Standardised Approach risk weight of 0 percent.