Risk Management

Admission and Ownership Control Procedures

The admission and ownership control procedures conducted by the Auditing Association serve to determine whether the applying institution meets the necessary prerequisites to participate in the Deposit Protection Fund.

In the case of newly-established institutions, the audit’s focal point of the applicant is in terms of scope on its financial solidity, i.e. well-regulated, financial relations and adequate capital resources with a view to the (intended) business model and the risk profile of the applicant institution (solvency and financial viability risk) including the ability to offset start-up losses, the availability of a long-term sustainable business model and the establishment of a proper business organisation in accordance with banking benchmarks.

With regard to institutions already in the marketplace, admission audits are additionally performed on site, which can be compared with the regular deposit protection audits in terms of methodology and scope.

A further important focal point of the admission procedure is to assess the shareholders with regard to their creditworthiness, reliability and respectability including natural persons acting on behalf of corporate bodies.

Similarly, so-called control ownership procedures are initiated when significant holdings are acquired in a member company. In-situ ownership control audits can take place in the course of such a procedure.

Admission and Ownership Control Procedures
Assessment of applicant institutions, according to prerequisites, to participate in the Deposit Protection Fund Assessment of the creditworthiness, reliability and respectability of important shareholders at member institutions



More information about the topic


Auditing Association Audit Guidelines Articles of the Auditing Association of German Banks






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