Credit risk – BaFin consultation regarding positions associated with particular high risk

Published

May 14 2019

Written By

As co-head of the global Finance & Financial Regulation Practice Groups and head of the German Finance & Financial Regulation Practice Group, I advise on national and international finance and capital markets law as well as on commercial and corporate law. I am also a member of the international steering group of our Financial Services Sector Group.

Johannes Wirtz, LL.M.

Partner
Germany

As partner in our Finance & Financial Regulation Group in Frankfurt, I advise our national and international clients on banking regulatory issues and finance law.

Offices

German regulator BaFin released its new draft circular on exposures associated with high risk.

Germany’s Federal Financial Supervisory Authority (BaFin), on 11 May 2019, published a draft circular (German) and started a consultation process on exposures to be associated with high risk under Article 128 section 3 of the Capital Requirements Regulation (CRR).

Through the circular, BaFin intends to comprehensively adopt the corresponding EBA-guidelines (EBA/GL/2019/01) on high risk exposures into its regulatory practice. Both the circular and EBA-guidelines will take effect on 1 July 2019. EBA’s consultation process regarding the guidelines (EBA/CP/2018/03) was conducted last year between April and July and its results are available online.

Submissions regarding the draft circular will be accepted - also by e-mail - until 24 May 2019. The comments will be published on BaFin’s website.

The authors thank Sascha Lucas for his support.