The Bundesbank, as Germany's central bank and guardian of price stability, has an inherent interest in a stable financial and monetary system. This is both a precondition for the effective implementation of monetary policy measures and a key prerequisite for an economy to prosper in the long term.

Germany’s lower house of parliament, the Bundestag, has vote on the Act to strengthen German financial supervision (Gesetz zur Stärkung der deutschen Finanzaufsicht) on 25 October 2012. It will become law on 1 January 2013.

Financial stability is a condition in which the financial system fulfils its central macroeconomic functions smoothly at all times, particularly in stress situations and in phases of structural adjustment.