An open book next to a laptop ©Dieter Roosen
Legal basis

Supervisory law sets the legal framework that institutions have to adhere to when they are formed and when they conduct business. Equally, the supervisory authorities can only perform supervisory activities within the legal framework set for them. Sources of law on banking supervision can be found in international, European or national rules and regulations.

EU legislation
Flags of the European Union ©Daniel Kalker / picture alliance

At the European level, sources of law are the regulations, which are directly applicable in all member states, and the directives, which have to be transposed into national law.

National legal basis
Reichstag with German flag ©Terr J. Alcorn / Getty Images

Legal norms in Germany consist of laws and statutory orders. These are also fleshed out in BaFin circulars and guidance notices.

Basel framework
Bank for International Settlements in Basel ©Frank Rumpenhorst

The Basel framework encompasses all applicable standards issued by the Basel Committee on Banking Supervision. The Bundesbank played a substantial part in formulating all of these standards.