Regulatory Alerts2020-04-02
Banking Act (Gesetz über das Kreditwesen)
The German Federal Financial Supervisory Authority (BaFin) issued this revised text of the Banking Act (KWG) to establish the comprehensive legal framework for the authorization, supervision, and conduct of credit institutions and financial service providers in Germany. The legislation mandates strict capital adequacy, liquidity, and organizational requirements while defining specific powers for BaFin to intervene in cases of insolvency risk or systemic instability. It also incorporates European Union regulations regarding large exposures, outsourcing, anti-money laundering measures, and the protection of depositors and investors.
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