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.
As part of the SREP, the national competent authorities assess the regulations, strategies and processes enacted by the institutions. They also evaluate the risks they are exposed to and their own funds and liquidity.
Supervisory assessment of bank-internal capital adequacy concepts and their integration into firm-wide performance and risk management processes ("ICAAP") – realignment
Bundesbank and BaFin have jointly redrafted the 2011 ICAAP guideline and published it on 24.05.2018. The realignment of the paper was made necessary by developments at the global and European levels as well as ongoing changes in institutional and regulatory practices.