Banking Supervision

Skyline Frankfurt ©Frank Rumpenhorst — © Frank Rumpenhorst

Banking Supervision

A well functioning economy requires a stable banking system. Banking supervision is therefore responsible for monitoring credit institutions’ business activity and maintaining investor confidence. In Germany, the task of banking supervision is shared by the Bundesbank and the Federal Financial Supervisory Authority (BaFin). In particular, the Bundesbank is in charge of monitoring the credit institutions.

Current aspects
FinTechs

Interest rate risk

Symposium

BAIT consultation
Brexit

Supervisory priorities

Basel III impact study

Report on bank offices
Bundesbank symposium 2024

© Frank Rumpenhorst

The Deutsche Bundesbank hosts the Bundesbank symposium annually, with the aim of promoting the exchange of information on current topics relating to banking supervision within the banking industry.

Bundesbank symposium 2024
Capital add-ons for systemically important financial institutions in Germany

© Frank Rumpenhorst

As from 1 January 2017, certain systemically important banks (SIBs) in Germany will need to hold more capital in order to enhance their resilience. The list of institutions concerned has been updated and published by the Federal Financial Supervisory Authority (BaFin).

Capital add-ons for systemically important financial institutions in Germany

Monthly Report: How climate change is challenging banking supervision

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Climate change and the transition to a climate-neutral economy are also presenting banks with major challenges. On the one hand, extreme weather events can directly impair banks’ loan collateral if, for example, property is destroyed. On the other hand, the transition to a climate-neutral economy can have an indirect impact on banks if the underlying conditions for enterprises change substantially and sometimes unpredictably. Banks need to develop new methods in order to measure and manage the resulting risks. Supervisors will be keeping a close eye on the progress made by banks in this area over the next few years.

Monthly Report: How climate change is challenging banking supervision

Directorate General Banking and Financial Supervision reorganised

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The Directorate General Banking and Financial Supervision has been reorganised with effect from 3 April 2023.

Directorate General Banking and Financial Supervision reorganised
Machine Learning in Risk Models

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BaFin and Deutsche Bundesbank are putting their joint consultation paper “Machine Learning in Risk Models – Characteristics and Supervisory Priorities” out for consultation. It deals with the concrete use of machine learning (ML) in risk models of Pillars I and II of the regulatory framework for banks and insurers.

Machine Learning in Risk Models
The Bundesbank wants the EU to comply with Basel III

In a joint letter, the Deutsche Bundesbank and 24 other national central banks and financial supervisory authorities within the EU are now calling for the European Commission to ensure that the proposal on updated capital adequacy rules for banks in the EU follows the global agreement known as Basel III. More precisely, we who are signing the joint letter wish to particularly emphasise that the output floor for risk-weighted assets and the standard method for credit risk should comply with the international agreement. Deviating from the Basel agreement could have a negative impact on confidence in both the European banking sector and the EU regulatory framework. It is therefore important that the global agreements are met in full and in a consistent manner.

Open file

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Open file
Speeches

Speaking at various occasions, members of the Bundesbank’s Executive Board regularly comment on issues relating to banking supervision.

Speeches
Discussion papers

Click here for academically oriented studies prepared by the Research Centre, including work on financial stability, most of which is written in English.

Discussion papers