Definitions

(1) Institutions within the meaning of this Act are CRR credit institutions and securities institutions that fall within the scope of this Act under section 1.
(2) Relevant capital instruments are capital instruments that are recognised, at the issuing undertaking, as Additional Tier 1 capital or Tier 2 capital for the purposes of satisfying the own funds requirements.
(3) For the purposes of this Act, the following terms are defined as follows: 1. Resolution means the application of a resolution tool to achieve one or more resolution objectives. 2. Resolution power means one of the powers referred to in sections 78 to 86, 101, 107, and 144 and 153. 3. Resolution authorities are the authorities designated by a Member State that are responsible for applying the resolution tools and exercising the resolution powers. 3a. Resolution entity means a) a legal person established in the European Economic Area that has been determined by the resolution authority under section 46 as an undertaking for which resolution measures are provided for in the resolution plan, or b) an institution aa) that is not part of a group subject to supervision on a consolidated basis under sections 8a to 8c of the Banking Act, and bb) for which a resolution measure is provided for in a resolution plan drawn up under section 40. 3b. Resolution group means a) a resolution entity and its subsidiary undertakings that are not themselves resolution entities, subsidiary undertakings of other resolution entities, or undertakings established in a third country that, under the resolution plan, do not belong to the resolution group, and their subsidiary undertakings, or b) CRR credit institutions that are permanently affiliated to a central body, and the central body itself, where at least one of those credit institutions or the central body is a resolution entity, and their respective subsidiary undertakings. 4. Resolution tool means a tool referred to in section 89, 90 or 107. 5. Resolution action means the decision to resolve an institution or group entity under section 62 or section 64, the application of a resolution tool, or the exercise of a resolution power. 6. Shareholder within the meaning of this Act means a shareholder or member. 7. On a consolidated basis corresponds to on the basis of the consolidated situation within the meaning of Article 4(1), point 47, of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 646/2012 (OJ L 176, 27.6.2013, p. 1). 8. Supervisory college means a supervisory college within the meaning of section 8e of the Banking Act. 9. Extraordinary public financial support means State aid within the meaning of Article 107(1) of the Treaty on the Functioning of the European Union, or Article 61(1) of the Agreement on the European Economic Area, or comparable financial support from public funds provided at supranational level, in each case granted for the purpose of preserving or restoring the viability, liquidity or solvency of an institution or a group. 9a. Board means the Board within the meaning of Article 42(1) of Regulation (EU) No 806/2014. 10. Significant branch means a significant branch within the meaning of section 8f(1) of the Banking Act. 10a. Clearing member means an undertaking within the meaning of Article 2, point 14, of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p. 1; L 321, 30.11.2013, p. 6), as last amended by Regulation (EU) 2019/834 (OJ L 141, 28.5.2019, p. 42). 10b. Bail-inable liabilities means the liabilities specified in more detail in section 91(1). 10c. Eligible liabilities means bail-inable liabilities within the meaning of section 91(1) that satisfy the requirements set out in section 49b or section 49f(2), point 1, as well as Tier 2 instruments that satisfy the requirements set out in Article 72a(1)(b) of Regulation (EU) No 575/2013. 11. Derivatives means derivatives within the meaning of section 1(11), sixth sentence, of the Banking Act. 12. Third country means a State that is not a Member State. 13. Third-country institution means an undertaking that has its head office in a third country and that, if it were established in the Union, would be considered either a CRR credit institution or a securities institution carrying on a service referred to in point 3 or 6 of Section A of Annex 1 to Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directives 2002/92/EC and 2011/61/EU (OJ L 173, 12.6.2014, p. 349; L 74, 18.3.2015, p. 38; L 188, 13.7.2016, p. 28; L 273, 8.10.2016, p. 35; L 64, 10.3.2017, p. 116; L 278, 27.10.2017, p. 56), as last amended by Regulation (EU) 2022/858 (OJ L 151, 2.6.2022, p. 1). 13a. EFTA Surveillance Authority means the independent surveillance body under Article 108(1) of the Agreement on the European Economic Area, established by the EFTA states within the meaning of Article 2, letter b, of the Agreement on the European Economic Area. 14. Own funds requirements means the requirements of Articles 92 to 98 of Regulation (EU) No 575/2013. 14a. Single Resolution Fund means the Single Resolution Fund within the meaning of Article 67(1) of Regulation (EU) No 806/2014. 15. Depositor means the holder of a deposit within the meaning of section 2(3) of the Deposit Guarantee Act. 16. Deposit guarantee schemes means schemes within the meaning of section 2(1) of the Deposit Guarantee Act. 17. Tier 2 capital means the Tier 2 instruments within the meaning of Article 63 of Regulation (EU) No 575/2013. 18. Eligible deposits means deposits within the meaning of section 2(4) of the Deposit Guarantee Act. 19. EU parent undertaking means an EU parent institution, an EU parent financial holding company, or a mixed EU parent financial holding company. 19a. European Union or Union means the European Union within the meaning of the Treaty on European Union; for the purposes of this Act, references to the European Union or the Union are deemed to be references to the European Economic Area, unless the Agreement on the European Economic Area provides otherwise. 19b. The European Economic Area within the meaning of this Act comprises the Member States of the European Union and the EFTA states within the meaning of Article 2, letter b, of the Agreement on the European Economic Area. 20. Financing arrangements means the mechanisms established by the Member States, whether through a fund or on the basis of mandatory contributions from institutions authorised in their territory, implementing Article 100 of Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council (OJ L 173, 12.6.2014, p. 190), as last amended by Regulation (EU) 2022/2036 (OJ L 275, 25.10.2022, p. 1; L 277, 27.10.2022, p. 316). 21. Financial contracts means a) securities contracts, in particular aa) contracts for the purchase, sale or loan of a security, a group of securities, or units in index funds, bb) options on a security, a group of securities, or a securities index, and cc) repurchase or reverse repurchase transactions on a security, a group of securities, or a securities index, dd) other comparable contracts that the institution enters into with securities depositories, settlement systems or payment systems, central counterparties or outsourcing undertakings, and ee) contracts from which bail-inable liabilities within the meaning of section 91(1) arise for the institution, b) commodities contracts, in particular aa) contracts for the purchase, sale or loan of a commodity, a group of commodities, or a commodities index, for future delivery, bb) options on a commodity, a group of commodities, or a commodities index, cc) repurchase or reverse repurchase transactions on a commodity, a group of commodities, or a commodities index, c) futures contracts, in particular contracts for the purchase, sale or transfer of a commodity or other good, a service, a right or an interest, at a specified price at a future date, d) swap agreements, in particular aa) interest rate swaps and options, spot or other foreign exchange agreements, agreements relating to currencies, an equity index or an equity, a debt index or a debt instrument, commodity indices or commodities, and agreements relating to weather, emissions or inflation, bb) total return, credit spread or credit swaps, e) lending agreements between institutions with a term of up to three months, f) master agreements for the contracts and agreements referred to in letters a to e, and g) contracts comparable to the contracts and agreements referred to in letters a to f. 22. Financial market infrastructure means a multilateral system among participating financial market actors, including a system operator, that provides for, or facilitates or enables, the clearing, settlement, custody and recording of payments, securities, derivatives and other financial transactions; it includes in particular systems within the meaning of section 1(16) of the Banking Act, the central counterparties referred to in section 1(31), first and second sentences, of the Banking Act, and exchanges. 23. Covered deposits means deposits within the meaning of section 2(5) of the Deposit Guarantee Act. 24. Covered bond means a covered bond within the meaning of Article 3, point 1, of Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019 on the issue of covered bonds and covered bond public supervision and amending Directives 2009/65/EC and 2014/59/EU (OJ L 328, 18.12.2019, p. 29), or, where the instrument was issued before 8 July 2022, a covered bond under Article 52(4) of Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (OJ L 302, 17.11.2009, p. 32; L 269, 13.10.2010, p. 27), as last amended by Directive (EU) 2019/2162 (OJ L 328, 18.12.2019, p. 29), in the version in force on the date of issue. 25. Managers means managers within the meaning of section 1(2) of the Banking Act. 26. Business day means any day other than a Saturday, a Sunday, or a statutory public holiday in the Federal Republic of Germany, on which no stock exchange trading takes place on at least one exchange in Germany. 26a. Global systemically important institution means an institution within the meaning of Article 4(1), point 133, of Regulation (EU) No 575/2013. 27. Cross-border group means a group whose group entities are domiciled in more than one State of the European Economic Area. 28. A group consists of the superordinate undertaking and its subordinate undertakings. 29. Group resolution means a resolution action taken at the level of a parent undertaking or an institution subject to supervision on a consolidated basis, as well as the coordination of the application of resolution tools and the exercise of resolution powers by resolution authorities in relation to undertakings of a group that meet the conditions for resolution. 30. Group entity means an undertaking that is a superordinate or a subordinate undertaking of a group. 30a. Common Equity Tier 1 capital means Common Equity Tier 1 capital calculated in accordance with Article 50 of Regulation (EU) No 575/2013. 31. Domestic Union branch means a Union branch maintained in Germany. 32. Common Equity Tier 1 instruments means the Common Equity Tier 1 instruments within the meaning of Article 28 of Regulation (EU) No 575/2013. 33. Institution or group entity under resolution means an institution or a group entity for which a resolution action is taken. 34. Institutional protection scheme means a liability arrangement within the meaning of Article 113(7) of Regulation (EU) No 575/2013. 34a. Combined buffer requirement means a combined buffer requirement within the meaning of section 10i(1) of the Banking Act. 35. Consolidating supervisor means the authority responsible for supervision on a consolidated basis within the meaning of Article 4(1), point 41, of Regulation (EU) No 575/2013. 36. Crisis management measure means a resolution action or the exercise of control powers under section 86(1). 37. Crisis prevention measure means a) the exercise of powers to remove impediments to recoverability under section 16, b) the exercise of powers to reduce or remove impediments to resolvability under section 59 or section 60, c) the application of early intervention measures under sections 36 to 38, or d) the exercise of the instrument for the participation of holders of relevant capital instruments under section 89. 38. Critical functions means activities, services and operations the discontinuation of which is likely to lead, in one or more Member States, to a disruption of services that are essential to the real economy, or to a disruption of financial stability, due to the size or market share of the institution or group, its internal and external interconnectedness, its complexity, or its cross-border activities, having particular regard to their substitutability. 38a. Wind-down entity means a legal person established in the Union for which it is provided, in the group resolution plan or, in the case of undertakings that are not part of a group, in the resolution plan, that the undertaking is to be liquidated by way of normal insolvency proceedings, or an undertaking within a resolution group that is not itself a resolution entity, for which the group resolution plan does not provide for the exercise of write-down and conversion powers. 39. Measure objective means: a) in the case of section 107(1), point 1, the establishment of an asset, financial and earnings position that durably ensures the competitiveness of the transferred undertaking or ensures its orderly wind-down, and b) in the case of section 107(1), point 2, the objectives referred to in section 132(1), points 1 to 3. 39a. Staff members at the level below senior management means senior management within the meaning of Article 4(1), point 10, of Regulation (EU) No 575/2013, excluding managers within the meaning of point 25. 40. Member State means a Member State of the European Union or an EFTA state within the meaning of Article 2, letter b, of the Agreement on the European Economic Area. 40a. Subordinated eligible instruments means instruments that satisfy the conditions set out in Article 72a of Regulation (EU) No 575/2013 and have not been permitted under Article 72b(3) to (5) of Regulation (EU) No 575/2013. 41. Emergency liquidity assistance means a time-limited measure taken by a central bank within the meaning of Article 4(1), point 46, of Regulation (EU) No 575/2013 in relation to solvent institutions or groups with temporary liquidity problems, in order to resolve those liquidity problems. 42. Relevant parent institution means a parent institution in a Member State, an EU parent institution, a financial holding company, a mixed financial holding company, a mixed holding company, a parent financial holding company in a Member State, an EU parent financial holding company, a mixed parent financial holding company in a Member State, or a mixed EU parent financial holding company, to which the creditor participation instrument is applied. 43. Netting arrangement means an arrangement under which a number of claims or obligations that are determinable or determinable in advance can be converted into a single net claim, including a) arrangements under which the parties' payment obligations become immediately due or terminate on the occurrence of an event and are to be converted into, or replaced by, a single net claim (close-out netting arrangement), b) close-out netting within the meaning of Article 2(1)(n)(i) of Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements (OJ L 168, 27.6.2002, p. 43), and c) netting within the meaning of Article 2, letter k, of Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems (OJ L 166, 11.6.1998, p. 45). 44. Union branch means a branch of a third-country institution located in a Member State. 45. Material business activities means business lines and associated services that can materially affect an institution's or a group's asset, financial and earnings position. Business activities are also material where they could, from the perspective of the institution or the group, in the event of a disruption, lead to a material loss of income or profits, to material losses, or to a material loss in the value of the shareholding. 46. Additional Tier 1 capital means the Additional Tier 1 instruments within the meaning of Article 52 of Regulation (EU) No 575/2013. 47. Branch means a place of business within the meaning of Article 4(17) of Regulation (EU) No 575/2013.
(4) For the remainder, for the purposes of this Act, the following definitions from Article 4(1) of Regulation (EU) No 575/2013 apply: 1. parent undertaking within the meaning of Article 4(1), point 15, of Regulation (EU) No 575/2013; 2. subsidiary undertaking within the meaning of Article 4(1), point 16, of Regulation (EU) No 575/2013. Where sections 14, 46, 49 to 54, 59, 60, 65, 66, 89, 96, 164 and 166 are applied to resolution groups under subsection (3), point 3b, CRR credit institutions that are permanently affiliated to a central body, the central body itself, and their respective subsidiary undertakings, are also deemed subsidiary undertakings, provided that the resolution groups satisfy the requirement of section 49e(3); 2a. significant subsidiary undertaking within the meaning of Article 4(1), point 135, of Regulation (EU) No 575/2013; 3. financial holding company within the meaning of Article 4(1), point 20, of Regulation (EU) No 575/2013; 4. mixed financial holding company within the meaning of Article 4(1), point 21, of Regulation (EU) No 575/2013; 5. mixed holding company within the meaning of Article 4(1), point 22, of Regulation (EU) No 575/2013; 6. financial institution within the meaning of Article 4(1), point 26, of Regulation (EU) No 575/2013; 7. parent institution in a Member State within the meaning of Article 4(1), point 28, of Regulation (EU) No 575/2013; 8. EU parent institution within the meaning of Article 4(1), point 29, of Regulation (EU) No 575/2013; 9. parent financial holding company in a Member State within the meaning of Article 4(1), point 30, of Regulation (EU) No 575/2013; 10. EU parent financial holding company within the meaning of Article 4(1), point 31, of Regulation (EU) No 575/2013; 11. mixed parent financial holding company within the meaning of Article 4(1), point 32, of Regulation (EU) No 575/2013; 12. mixed EU parent financial holding company within the meaning of Article 4(1), point 33, of Regulation (EU) No 575/2013; 13. own funds within the meaning of Article 4(1), point 118, of Regulation (EU) No 575/2013.