Annual review of financial situation

Our house bank (Sparkasse) wants to have our current tax assessment once a year. Since we have clearly broken the million mark due to the various rental properties and our own home, this is probably quite common from a certain amount, depending on the respective bank. However, I don’t see this as harassment..-..my bank is allowed to know my finances.

Above all, I don't really find it a big deal. As long as nothing in the contract states that the interest rate can be adjusted due to reduced creditworthiness (and thanks to the fixed interest rate, it probably won't), nothing else will happen. I can much more easily imagine that banks are legally required, especially since the financial crisis, to regularly subject their mortgage loan portfolio to a risk assessment by the Federal Financial Supervisory Authority and others.

Our bank initially also wanted a copy of the annual tax assessments, but now they no longer want that. Income is steadily increasing, after all.

The question is what is contractually fixed. If the regular submission of documents is contractually fixed, it must be done. The question is also, what can happen if the creditworthiness deteriorates. It is all written there in black and white. I personally think that my contract partner should know as little about me as necessary. It is also not "my" bank, just a bank.

The question is also, what can happen if the creditworthiness deteriorates. It’s all there in black and white.

Regulated the same in all T&Cs. At most credit termination.

Is the procedure now actually regulated by, for example, the Federal Financial Supervisory Authority or is it self-imposed responsible action by the banks.

By the way, I do not share the opinion that it is just "a bank." "The bank" accompanies and supports my life planning to the extent possible. I am also not a fan of online banks. My "traditional" local bank has known me since my youth, accompanies me in all my endeavors, and has always proven to be flexible.