Development impacting banking supervision in Germany

On this
date, primary responsibility for the supervision of the largest banks in the Euro area,
including an expected 24 German banks, will be transferred to the European Central Bank
(ECB). National authorities will remain involved in the supervision of those banks, as it is
expected that they will assist the ECB in the performance of its new supervisory tasks. For
smaller banks, national competent authorities will retain responsibility with ECB oversight.
These changes will have a significant impact on the roles, responsibilities and tasks of both
BaFin and Bundesbank as well as on current supervisory practices.

While these changes pose uncertainties and challenges, the German authorities are
encouraged to continue their efforts to enhance supervisory frameworks and processes. In
particular, the transition to the SSM does not lessen the need by the authorities and/or the
ECB to implement measures to further enhance: (i) prompt and comprehensive risk
identification; and (ii) timely and effective supervisory intervention.