Bank supervision and medium-sized companies

The main aim of the banking supervisory authorities is to counter abuses in banking and credit business. However, medium-sized companies that are seeking capital must also adhere to the regulations of the Banking and Credit Business Act and, in particular, delimitation as against banking business, so that they are not subject to the extensive licensing and disclosure obligations of the Banking and Credit Business Act. In this connection what must be complied with, in the devising of equity interest conditions for dormant equity interests and the taking up or extension of loans, is, in particular, delimitation as against capital contribution business or lending business on the part of the banks and, in the context of staff profit-sharing schemes, the prohibition of what are termed ‘works savings banks’. If these regulations are not adhered to, the conducting of illicit banking business, that is punishable, might obtain, and the company in question could come under the scrutiny of the banking supervisory authorities. In a worst-case scenario this could lead to the immediate repayment of the investors’ money that has been brought in. In order to prevent a confrontation with the BaFin from the outset, we can make an enquiry for you through the route of an information procedure, with the BaFin, to arrange certification of the admissibility of the equity interest offer under banking supervision law.