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.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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