Until recently German funds were at a disadvantage over their competitors from other countries as regards the origination of loans. But legislation that entered into force on 18 March 2016 provides a careful relaxation of the restrictions on loan origination for German funds. In relation to non-German funds, the German banking license requirement applies if the lender addresses itself to the German market via advertisements, internet offerings, personal visits, e-mails, cold calls or the use of intermediaries. In contrast, “passive services,” i.e., where the lender is contacted by the borrower or the borrower’s adviser or by an arranger in the course of a loan syndication, do not trigger a license requirement. This has enabled non-German loan originating funds to operate at least on a limited basis in Germany.