two topics that are relevant for financial stability
The main purpose of the peer review report is to examine two topics that are relevant for
financial stability and important for Germany: its macroprudential policy framework and
microprudential supervision. Both topics were included in the key FSAP recommendations
and are topical for the broader FSB membership.
The peer review focuses on the steps taken
to date by the German authorities to implement reforms in these areas, including by following
up on relevant FSAP recommendations. In particular, the review evaluates progress with the
reforms in order to draw conclusions and policy implications as well as identify remaining
impediments and lessons that could be of benefit to Germany and its FSB peers.
The report has two main sections, corresponding to the two topics being reviewed. Section 2
focuses on the macroprudential policy framework, while Section 3 analyses the steps taken
by the authorities to strengthen the prudential supervision of banks and insurance companies.
In addition to these sections, Annex 1 provides background information on the structure of
the German financial system and on recent regulatory developments, while Annex 2 presents
the follow-up actions reported by the German authorities to other key FSAP
recommendations; these actions have not been analysed as part of the FSB peer review and
are presented solely for purposes of transparency and completeness.