12.2 Documentation of loans to members of the management body and their related parties and additional information

For the purpose of Article 88(1) of Directive 2013/36/EU, institutions should document data on loans⁴⁰ to members of the management body and their related parties properly, including at least:

• a. the name of the debtor and their status (i.e. member of the management body or related party) and regarding loans to a related party, the member of the management body to whom the party is related and the nature of the relationship to the related party;
• b. the type/nature of loan and the amount;
• c. the terms and conditions applicable to the loan;
• d. the date of approval of the loan;
• e. the name of the individual or body and its composition taking the decision to approve the loan and the applicable conditions;
• f. the fact (yes/no) as to whether or not the loan has been granted at market conditions; and
• g. the fact (yes/no) as to whether or not the loan has been granted at conditions available to all staff.

⁴⁰ See also EBA Guidelines on loan origination, available under: https://eba.europa.eu/regulation-and-policy/credit-risk/guidelines-on-loan-origination-and-monitoring

Institutions should ensure that the documentation of all loans to members of the management body and their related parties is complete and updated and that the institution is able to make available to competent authorities the complete documentation in an appropriate format upon request without undue delay.

For a loan to a member of the management body or their related parties above an amount of EUR 200 000, institutions should be able to provide to the competent authority upon request the following additional information:

• a. the percentage of the loan and the percentage of the sum of all outstanding amounts of loans towards the same debtor compared to:
• i. the sum of its Tier 1 capital and Tier 2 capital and
• ii. common equity Tier-1 capital of the institution;
• b. whether the loan is part of a large exposure⁴¹ ; and
• c. the relative weight of the aggregated sum of all outstanding amounts of loans towards the same debtor, calculated as a percentage by dividing the total outstanding amount by the total amount of all outstanding loans to members of the management body and their related parties.

⁴¹ See also Part IV of Regulation (EU) No 575/2013 and in particular Article 392.