# BaFin Plans Broader Competence Rules for Consumer Loans > BaFin is consulting on new competence rules for general consumer loans that will apply to credit institutions from 20 November 2026. Source: https://www.mtrlegal.com/en/bafin-plans-broader-competence-rules-consumer-loans/ · Language: en · Updated: 2026-10-26 --- ## BaFin Consults on Broader Professional Competence Rules On 13 October 2026, the [Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin, German Federal Financial Supervisory Authority)](https://www.bafin.de/SharedDocs/Veroeffentlichungen/DE/Meldung/2026/meldung_2026_10_13_konsultation_09_2026_aenderungsverordnung_sachkunde.html) launched a consultation on a draft regulation amending the Immobiliar-Darlehensvergabe-Sachkunde-Verordnung (German Regulation on Professional Competence in Residential Mortgage Lending). In future, employees of credit institutions will be required to demonstrate their professional competence not only when granting residential mortgage loans to consumers, but also when granting general consumer loans. The proposed requirements apply to internal and external staff of credit institutions involved in granting consumer loans. The basis for the detailed provisions to be laid down by regulation is § 18a Abs. 11 Kreditwesengesetz (KWG, German Banking Act). ## Extension of the Professional Competence Requirement ### Implementation of the Second EU Consumer Credit Directive The extension of the professional competence requirements is based on the Gesetz zur Umsetzung der Richtlinie (EU) 2023/2225 über Verbraucherkreditverträge (Act Implementing Directive (EU) 2023/2225 on Consumer Credit Agreements). On 17 April 2026, the Bundestag adopted the [implementing act, which did not require the Bundesrat’s consent](https://dip.bundestag.de/vorgang/gesetz-zur-umsetzung-der-richtlinie-eu-2023-2225-%C3%BCber-verbraucherkreditvertr%C3%A4ge-und/325529) and originated from a Federal Government initiative. It was executed on 12 May 2026 and promulgated on 18 May 2026 in Bundesgesetzblatt 2026 I Nr. 139 (Federal Law Gazette 2026 I No. 139). The amended requirements will apply from 20 November 2026. From that date, employees who grant general consumer loans are also intended to be subject to the statutory professional competence requirements. ### Further Changes to Consumer Credit Law The implementing act broadens the scope of consumer credit law. In future, it will cover in particular: - Small loans of up to EUR 200. - Loans that do not incur any interest or fees. - Financing models based on the “buy now, pay later” principle. At the same time, the creditworthiness assessment for general consumer loans will be aligned with the standards applicable to residential mortgage loans to consumers. In future, text form will be sufficient for entering into general consumer credit agreements. In addition, the act improves protection against termination in relation to overdraft facilities. ## Content and Procedure of the BaFin Consultation ### Written Consultation Procedure The consultation is being conducted under Geschäftszeichen WA 15-FR 4100/00017#00001 (reference number WA 15-FR 4100/00017#00001). Comments may be submitted to BaFin until 27 October 2026. Submissions should state the reference number and the subject “Comments in connection with Consultation 09/2026”. The procedure will be conducted exclusively in writing. No subsequent hearing is planned. BaFin intends to publish the comments received online. This is particularly relevant when marking content as confidential. The draft regulation is available as a PDF file of approximately 218 kilobytes. The document also contains the explanatory memorandum for the proposed amendments. ### Subject Matter of the Regulation On the basis of § 18a Abs. 11 KWG, the existing Immobiliar-Darlehensvergabe-Sachkunde-Verordnung specifies in greater detail the knowledge and skills required of internal and external staff involved in granting loans. The draft under consultation is intended to adapt these provisions to the statutory extension of the professional competence requirement to general consumer loans. The consultation concerns a draft regulation. The procedure has not yet been concluded by the publication of the draft and the receipt of comments. ## New Licensing Requirement for Loan Brokers In parallel with the changes envisaged for credit institutions, § 34k Gewerbeordnung (GewO, German Trade Regulation Act) will enter into force on 20 November 2026. The provision creates a new licensing requirement for the commercial brokerage of consumer loans. Further details are set out in the Darlehensvermittlungsverordnung (German Loan Brokerage Regulation). The professional competence examination provided for there will be conducted exclusively in writing. It is deemed to have been passed if at least 50 per cent of the available points are achieved. Industrie- und Handelskammer Dresden intends to offer the relevant examinations from November 2026. ## Significance for Credit Institutions and Market Participants The planned amendment to the professional competence regulation forms part of a broader reform of consumer credit law. In addition to expanding the range of credit products covered, the requirements governing creditworthiness assessments and the qualifications of staff involved in granting loans are being revised. For companies, investors and other market participants, this may raise questions regarding the scope of the professional competence requirements and the regulatory framework. MTR Legal advises clients on related matters as part of its [banking law advisory services](https://www.mtrlegal.com/rechtsberatung/bankrecht/).