Actions for banking supervision
Ladder of Actions for banking supervision
BaFin has access to various supervisory tools and powers, both formal and informal (i.e.
Moral suasion), to intervene in an institution when necessary. As previously noted and in
response to the FSAP recommendations, BaFin adopted in December 2013 a formal “ladder
of actions” for banking supervision.
The “ladder of actions” sets out a series of supervisory
actions and measures, including capital add-ons, which can be taken when deficiencies in any
of three areas are identified: organisational matters (related to risk management practices and
operational controls), capital adequacy or liquidity.
EU Forecast
euf:ba.18.j:102/nws-01