Large exposure reporting requires credit institutions to report large exposures to the Bundesbank in accordance with Regulation (EU) No 575/2013 (Capital Requirements Regulation – CRR). A key aspect of the regime is the provision limiting permissible size: a single large exposure may not exceed 25 % of Tier 1 capital. Large exposures are defined as loans to a single borrower or group of connected clients that amount to 10 % of Tier 1 capital or more. The Bundesbank monitors compliance with the large exposure limits as well as the risk spread of an institution’s large exposures. Monitoring these indicators provides supervisors with valuable information on the amounts and sector-specific concentration of institutions’ risk from lending business. The European large exposure regime is supplemented by national provisions under Sections 13 and 13c of the Banking Act (Kreditwesengesetz – KWG).

Institutions are required to report on a quarterly basis and upon exceeding the threshold. Quantity data reports may be submitted in the Bundesbank’s ExtraNet system or entered via the reporting platform. Under Section 8 of the Regulation Governing Large Exposures and Loans of €1 Million or More (Großkredit- und Millionenkreditverordnung – GroMiKV), master data on individual borrowers and groups of connected clients must be submitted in paper-based form using the STA and STAK reporting forms as contained in Annexes 3 and 6 to the GroMiKV.