Tuesday 22 January 2013

Germany: the Financial Stability Act

BaFin, the Federal Financial Supervisory Authority, has provided a summary (in English) of the Financial Stability Act (Gesetz zur Überwachung der Finanzstabilität – FinStabG) and its provisions, some of which came into force earlier this month: see here. Amongst other things, the new Act creates a German Financial Stability Committee with members drawn from the Federal Ministry of Finance, the Bundesbank and BaFin.

The German legislation (and that with a similar purpose being adopted in the United Kingdom, Belgium and the Czech Republic) is considered in the first paper to be published this year in the legal working paper series of the European Central Bank: see here (pdf). Note also that the European Systemic Risk Board published last year a recommendation on the macro-prudential mandate of national authorities (ESRB/2011/3, OJ 2012/C 41/01).

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