Banking supervisory responsibilities and tasks

Background,Banking supervisory responsibilities and tasks are divided between BaFin and the
Bundesbank with the details of their cooperation having been formalised through a
Memorandum of Understanding (MoU) and an accompanying Supervision Guideline.22
According to these documents, the Bundesbank is primarily responsible for the ongoing
monitoring and analysis of regulatory returns/financial statements and on-site inspections of
banks.

The Bundesbank then communicates the results of its analysis and inspections to
BaFin, which will make the final assessment and is the competent authority with decision
making powers on all banking supervisory measures and questions of interpretation.