Introduction to Banking Act 18

This module enables the client to monitor the credit exposure to both retail and corporate customers and the corresponding customer group. The credit exposure can be used to perform the reporting threshold check as mentioned in the §18 Banking Act.

A regulation of section 18 German Credit Banking Act (KWG) specifies that a credit institution may only grant a loan exceeding a total of EUR 750,000 or 10 per cent of the institution's eligible capital if the borrower has the financial circumstances disclosed. Therefore all the individual and corporate customers must be monitored with respect to their current credit volume not exceeding the limit of 750,000.00 €.

Current credit volume of the customers has to be checked by a credit institution before granting a loan. Current credit volume means the current residual debt amounts of the customer's credit and leasing contracts.

This functionality allows banks to check the current credit volume of a customer or a customer group at any point in time.