The tasks of the BaFin directorate for Banking Supervision include,
inter alia, constant monitoring of banks to ensure that they com-
plying with capital adequacy requirements, maintaining suffcient
liquid funds, and complying with statutory risk limits (e. G. Large
It also ensures that the banks’ bad debt provi-
sions are in line with their risk exposure. The BaFin directorate
for Insurance Supervision is responsible, inter alia, for granting
the regulatory authorization required by enterprises in order to
carry out insurance business.
The BaFin directorate for Securi-
ties Supervision/Asset Management is responsible for ensuring,
inter alia, that insider trading prohibited by the German Securities
Trading Act (Wertpapierhandelsgesetz – WpHG) does not occur.