The amended version of the Minimum Requirements for Risk Management ( Mindestanforderungen an das Risikomanagement – MaRisk) is. After comments on the MaRisk draft of 18 February had been examined in detail and Bundesbank and BaFin have jointly redrafted the ICAAP guideline and published it on MaRisk in the version of 15/12/ Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) Annex 1: Annotated text of the Minimum Requirements for Risk Management (MaRisk) in Securities Trading Act in conjunction with Circular 4/ (WA) –.

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It is an independent federal institution with headquarters in Bonn and Frankfurt and falls under the supervision of the Federal Ministry of Finance Germany.

BaFin supervises about 2, banks, financial services institutions and over insurance undertakings. bafim

Federal Financial Supervisory Authority

The aim of this legislation was to create one integrated financial regulator that covered all financial markets. This meant there was uniform national supervision of bankscredit institutionsinsurance companiesfinancial service companies, brokers and stock exchanges.

This model was designed to provide transparency and manageability and to make sure all financial activity was regulated. In changes to the Banking Act KWG gave BaFin further responsibility to monitor the credit worthiness of financial institutions and to collect detailed information from those institutions.

The aim was to increase customer protection and the reputation of the financial system. It shares responsibility here with the Bundesbank. As ofBaFin is in transition, after major responsibilities for banking supervision shifted to the purview of the European Central Bank in November On 19 Septemberin response to bafn from the global financial crisis and following measures taking by the United StatesBaFin banned short selling on eleven German finance stocks. The ban expired on the 31 January and was not renewed at that time.


On 19 Mayin response to European sovereign debt crisisBaFin banned naked short selling of credit default swaps on euro-area government bonds until 31 March Narisk the same time they re-introduced a ban on naked short selling of the previous 10 banks and insurers companies. Frank Amrisk insurance supervision and Beatrice Freiwald cross-functional areas and internal administration.

In addition to these divisions, the so-called “operational pillars”, there are the a number of departments that have cross-organizational or perform administrative tasks, such as “risk modeling”, “money laundering” and “international responsibilities”. BaFin employs roughly 2, at its two offices [6] and is fully funded by fees and levies of the supervised institutions and companies and so is independent of the federal budget. The levy amounts depend on the scope and authorization of marik assets.

An appeal to the Constitutional Court regarding the unconstitutionality bxfin this forced levy in was rejected as unfounded. In the opinion of the court the levy is ‘intended to strengthen the investor confidence and the soundness and integrity of these companies.

These are a necessary condition for a functioning financial framework’. As of DecemberBaFin regulated approximately 1, banksfinancial services institutions, insurance companies31 pension funds, 6, domestic investment funds and investment companies.


The main task of BaFin is the supervision of banks, insurance companies and the trading of securities and ensure the viability, integrity and stability of the German financial system.

As a financial market-based institution BaFin is responsible to both providers barin consumers.

#LoungeTalk: MaRisk VA

On the supply side it pays attention to the solvency of banks, insurance companies and financial institutions. For investors, bank customers and insured it ensures confidence in the financial markets and the companies operating therein.

To maintain the integrity and stability of the financial system and combat money laundering BaFin is obliged, under the Banking Act, to run a centralized computer system that stores information on all accounts and their account holders. This information must be provided to BaFin by all financial institutions in Germany.

It monitors compliance with the rules and guidelines of the Banking Act relating to credit and financial institutions.

The establishment of new banks in Germany are subject to a compulsory license subject to law, BaFin, as the competent authority, approves such licenses.

It takes into account the management, minimum capital requirements, reliability, solid leadership and the sustainability of business when approving licenses. Throughout their operation, financial institutions are subject to ongoing supervision by the BaFin. This is to ensure all conditions are met. In particular, the financial condition of solvency and liquidityincluding having appropriate risk control – and management systems as described in the MaRisk -circulaire.

All information will be assessed and evaluated in close cooperation with the Deutsche Bundesbank.

In addition, BaFin may order special tests, which are also carried out by members of the 210 on the spot. The Banking Law provides BaFin an extensive arsenal of sanctions including criminal sanctions, ranging from written warnings of fines to withdrawal of banking license. Similar to bank supervision, the Insurance Supervision Law VAG requires insurance companies to receive and maintain their business with approval of BaFin, and the conditions are similar to those of banking supervision.

BaFin supervises insurance companies including pension and burial fundsholding companies, security and pension funds. This excludes insurers that operate in only one province. These are subject to supervision by the competent local authority. The supervisor shall include the monitoring of security assets and solvency to ensure that insurance contracts can be met.

BaFin also monitors in general compliance with all laws applicable to the operation of insurance businesses. This includes in particular the prevention of insider trading and other market abuses such as price and market manipulation. As part of this BaFin collects information marisi all securities traded as well as disclosures from listed companies from all market participants.

This 20010 is used to detect insider trading, price and market manipulation. In particular, the buying and selling of shares by company management in the same company is monitored closely Directors Dealings. BaFin also ensures market transparency by supervising reporting rules and disclosure requirements and makes marrisk these are followed.

BaFin enforcement powers range from the issuing of subpoenas and questioning people, suspending or prohibition trading in financial instruments up to being able to forward cases to the public prosecutor.


BaFin acts as the central depository for prospectushowever BaFin only checks basic information and does not check for the accuracy mariskk creditworthiness of the issuer. BaFin is in effect a law enforcement agency and can initiate legal action.

It has the right, when it discovers a crime or even the suspicion of a crime, in particular insider trading, market manipulationillegal operation of banking, financial fraud, incitement to establish stock exchange speculation to forward them to law enforcement authorities. In marisl past, BaFin has hardly ever made use of its enforcement powers and maris, resolved issues discreetly with any bank. InBaFin opened a new office dedicated to corporate whistleblowers, aiming to encourage more business insiders to expose wrongdoing.

The new office centralizes the collection of details from whistleblowers and follows a special protocol to ensure identities are kept secret. It can also be contacted anonymously under the procedure.

Soon after its establishment there were signs that there were serious shortcomings within the internal structure of BaFin. The Examination by the Federal Koblenz noted in March bfin the internal control system of authority is insufficient.

Inthe Federal Court revealed the embezzlement of more maridk 4 million euro by Michael Raumann, the former head of information technology at BaFin, [11] for which he was indicted and convicted by the Bonn district court.

Federal Financial Supervisory Authority – Wikipedia

In the sentencing notes the court criticized BaFin for its “nonexistent” internal controls. In September a report by PricewaterhouseCoopers and BaFin internal audit found that the requirements of the federal government to prevent corruption had not been implemented.

The internal paper estimated the volume of debt to be billion euros. This confidential information was seen as potentially damaging to the creditworthiness of the banks and their sustainability and was seen as a serious breach by BaFin. Shortly after the publication of the information, BaFin asked the Munich public prosecutor’s to raise a criminal complaint against persons unknown on suspicion of breach of statutory duty of confidentiality.

Furthermore, the Federal Chamber is in the process of establishing special Guirrdelines for its members, particularly in the interpretation of the Money Laundering Act. From Wikipedia, the free encyclopedia.

Retrieved March 9, Retrieved 4 April Retrieved 20 May Archived from the original on German federal financial administration. Bundesfinanzministerium Generalzolldirektion Oberfinanzdirektion Bundesfinanzdirektion Bundeszollverwaltung Hauptzollamt Zollamt Abfertigungsstelle. Bildungs- und Wissenschaftszentrum der Bundesfinanzverwaltung.

Retrieved from ” https: Banking in Germany Financial regulatory authorities German federal agencies Government agencies established in establishments in Germany. Views Read Edit View history.

In other projects Wikimedia Commons. This page was last edited on 15 Novemberat By using this site, you agree to the Terms of Use and Privacy Policy. Bonn and Frankfurt am MainGermany.