Experience in exchange with BaFin is crucial

The main task of BaFin, which is based in Frankfurt am Main and Bonn, is to ensure the functionality, integrity and stability of the German financial system. To fulfil this task, BaFin is endowed with extraordinarily extensive supervisory, control, ordering and intervention powers.

In the area of banking supervision, BaFin supervises credit, financial services, securities, payment and e-money institutions in the establishment and operation of their businesses. The central legal basis for banking supervision is the German Banking Act (KWG) and the Payment Services Supervision Act (ZAG).

The extent to which institutions are supervised depends on the type and scope of the business they conduct. The main focus of supervision is generally to ensure that the institutions maintain sufficient equity and liquidity and have installed appropriate risk control mechanisms. The regulatory requirements under the German Banking Act (KWG) and the German Payment Services Supervision Act (ZAG) are also highly relevant for companies from the non-financial sector. In particular, companies must be careful not to engage in lending business, deposit business or guarantee business in the course of their refinancing.

BaFin’s central tasks in the area of securities supervision include combating insider trading as well as reviewing the publication of ad hoc announcements, directors’ dealings and significant voting rights announcements. In addition, BaFin is responsible for approving sales prospectuses for securities and investments offered to the public in Germany.

Find out more about our key services on the left-hand side of this page.