# Sale of credits

- Canonical URL: https://www.gerhardmerk.de/sale-of-credits
- Post ID: 591592
- Modified: 2023-07-25T21:11:46+00:00
- Language: en

## Definition

The German Federal Financial Supervisory Authority (BaFin) counts the following transactions as sale of credits in a separate fact sheet on credit transactions. - The synthetic transaction. In this case, the bank seeks to contractually transfer the risk to a third party - usually by way of credit derivatives - but continues to retain the loan on its balance sheets and process it. - The spin-off or demerger. In this process, a loan portfolio is initially transferred to a company specifically spun off or split off for this purpose by means of the spin-off or spin-off by way of universal succession in accordance with the German Transformation Act. - The contractual transfer of a loan portfolio. Here, the purchaser takes the place of the seller - with the consent of the respective debtor - in the individual loan relationships. - The sale of receivables (true sale). In this case, the loan portfolio is sold to a special purpose entity or other third party by way of an undisclosed or open assignment of the loan receivables. - Sub-participation model. In this case, the investor forms a civil law internal or silent partnership by way of granting an open or silent sub-participation. - The information sheet of the German Federal Financial Supervisory Authority (BaFin) contains more detailed explanations on the licensing requirements for the transactions listed. - See loan sale, loan assignment, loan securitization, subrogation, securitization, rehypothecation, assignment, special purpose entity. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 2.0.0