By-laws of the Deposit Protection Fund valid from January 2023

for Economic Cooperation and Development (OECD) as well as to
international organisations if the borrower is endowed with a rating of at
least “BBB” assigned by an acknowledged rating agency or a comparable
evaluation by the Auditing Association exits; moreover, loans guaranteed
by one of the categories of borrowers specified above are exempt as well
as loans to central counterparties in accordance with §1 paragraph 31
German Banking Act residing in a member state of the OECD).
(3) In particular, the risk of a “disproportionate claim” at the expense of the
Deposit Protection Fund is imminent if the rating of the member bank according
to §4 paragraph 1 sentence 1 No. 6 is inferior to “A-” and
1. the portion of unprotected liabilities plus the bank’s own funds in
relation to total liabilities plus the bank’s own funds makes up for less
than 10% (in this respect total liabilities are to be adjusted by liabilities
from derivatives provided that they are subject to accredited netting
agreements; unprotected liabilities are the adjusted total liabilities
after deducting deposits by the Deposit Protection Fund, deposits
covered by the German Banks’ Compensation Scheme (EdB) or any
other approved European compensation scheme as well as liabilities
collateralised by assets) or
2. considerable portions of the member bank’s assets serve as collateral
for its liabilities or
3. the member bank does not feature funding activities that are diversified
with respect to maturities and sources, in particular if the volume of
deposits protected by the Deposit Protection Fund or covered by other
compensation schemes amount to more than the thirtyfold of unprotected
liabilities or account for more than twentyfold of the bank’s own funds.
(2) (1) In addition, the Auditing Association may impose conditions designed to
ensure compliance with the reported relevant circumstances and the business
policy objectives as stated at the time of application for admission or during
the course of the owner control procedure, which formed the basis for the
admission of the member bank or the change of shareholder. (2) If the member
bank wishes to make a substantial change in this regard, a prior assessment is
to be performed by the Auditing Association.
(3) The Auditing Association may also impose conditions if a member bank intends
to carry out a substantial change in its business model or any other change
pursuant to §10 paragraph 1 sentence 1 No. 8 and the condition is designed
to prevent any increase in the existing risk exposure of the member bank or to
safeguard a limitation of the volume of the member bank’s protected deposits
from customers until the completion of an assessment of the intended change.
(4) Furthermore, the Auditing Association may impose conditions if it obtains
information from outside of a deposit protection audit regarding a significant
risk to the net asset position, the financial situation or the profitability of the
member bank and if the conditions serve to prevent any increase in the existing
risk of the member bank or to safeguard a limitation of the volume of the
member bank’s protected deposits from customers until the completion of an
assessment of the issue in question.
(5) If a qualified participating interest (§1 paragraph 9 German Banking Act
(KWG)) in a member bank is acquired or a procedure pursuant to §6 paragraph
1 sentence 1 No. 2 to No. 4 is initiated before an owner control procedure
pursuant to §4 paragraph 1 sentence 1 No. 2, §6 and §10 paragraph 1 sentence
1 No. 6 has been completed, the Auditing Association may impose one or
several conditions – on the basis of paragraph 1 sentence 1 No. 6 as mentioned
above – which are suitable to maintain the existing risk situation until the
completion of the owner control procedure.
66 By-laws Annex to Section 5 (5)
By-laws Annex to Section 5 (5) 67