Introduction to Banking Act (KWG) §15 - Institution Loans

This document briefly explains the features of the KWG15 Institution Loans and the cor- responding parameter setup that will be required for report generation.

The solution helps the bank to be compliant concerning the obligations according to the German Regulatory of §15 KWG. The banking act specifies the legal prerequisites to grant a loan to a person who has a certain relationship with the bank.

The solution able the bank to monitor loans that has been given to persons that have a specific relationship to the bank, for example, the director of the bank.

These specific relationships or roles are stored in a parameter table. If a customer has a relationship, for example “director”, this role shall be assigned to the correspondent customer record.

To monitor the loans according to the §15 KWG it is possible to create an output with the details of already granted loans to these specific persons.