The Deutsche Bundesbank participates in ongoing banking
supervision. Its participation is governed by § 7 of the German
Banking Act (Kreditwesengesetz – KWG).
Among other things,
the Bundesbank analyzes the reports and returns that institu-
tions have to submit on a regular basis and assesses whether
their capital and risk management procedures are adequate.
The Basel Committee on Banking Supervision is exerting an
increasing infuence on banking supervision. Germany has imple-
mented the recommendations of the Basel Committee on Banking
Supervision (e. G. Basel II) via German Banking Act (KWG), Regula-
tion Governing Solvency (SolvV), and Minimum Requirements for
Risk Management (MaRisk).
Other recommendations (e. G. Basel
III) and EU standards (e. G. Solvency II) will be implemented in the