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MaRisk
MaRisk is an acronym referring to the minimum requirements for risk management (German: '), a circular by the German Federal Financial Supervisory Authority (', BaFin) providing concepts for risk management of banks, insurances and other companies financially trading in Germany. The primary legal background for MaRisk is the Kreditwesengesetz (KWG), the secondary legal background is the '' Solvabilitätsverordnung SolvV''. MaRisk implements the qualitative requirements of Basel II and Basel III into German law. Strictly speaking, MaRisk is not a law, but a ''norm-interpreting administrative regulation'' (German: ), nevertheless it is de facto binding for all financial institutes and insurance companies with business in Germany. Details One core principle of MaRisk is that the risk control department has to be set up to be organisationally independent from those departments performing business transactions. This separation should prevail throughout the organisation up to and i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
MaRisk
MaRisk is an acronym referring to the minimum requirements for risk management (German: '), a circular by the German Federal Financial Supervisory Authority (', BaFin) providing concepts for risk management of banks, insurances and other companies financially trading in Germany. The primary legal background for MaRisk is the Kreditwesengesetz (KWG), the secondary legal background is the '' Solvabilitätsverordnung SolvV''. MaRisk implements the qualitative requirements of Basel II and Basel III into German law. Strictly speaking, MaRisk is not a law, but a ''norm-interpreting administrative regulation'' (German: ), nevertheless it is de facto binding for all financial institutes and insurance companies with business in Germany. Details One core principle of MaRisk is that the risk control department has to be set up to be organisationally independent from those departments performing business transactions. This separation should prevail throughout the organisation up to and i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Kreditwesengesetz
The German Banking Act Kreditwesengesetz (KWG) literally means ''law of the banking system'', is the primary legally implementation of the Basel Accords. It is binding for banks and other institutes providing financial services (German: '' :de:Kreditinstitute und :de:Finanzdienstleistungsinstitute'') in Germany and effective since January 1935, but updated in 1962. Purpose The main goals of the KWG are: * To guarantee and safeguard the functionality of banks (literally in German: ''Sicherung und Erhaltung der Funktionsfähigkeit der Kreditwirtschaft'') * To safeguard the creditors from losing their invested capital, i.e. any kind of share (literally in German: ''Schutz der Gläubiger von Kreditinstituten vor Verlust ihrer Einlagen'') The Kreditwesengesetz imposes restriction on risk-related business activities and extends the duty of disclosure. It ensures competences of regulators and is the legal justification of the German Solvability Directive ( SolvV) and MaRisk, the corre ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Federal Financial Supervisory Authority
The Federal Financial Supervisory Authority (german: Bundesanstalt für Finanzdienstleistungsaufsicht, Bundesanstalt für Finanzdienstleistungsaufsicht) better known by its abbreviation BaFin is the financial regulatory authority for Germany. It is an independent federal institution with headquarters in Bonn and Frankfurt and falls under the supervision of the Federal Ministry of Finance. BaFin supervises about 2,700 banks, 800 financial services institutions, and over 700 insurance undertakings. History Background Prudential banking supervision in Germany essentially started as a consequence of the banking crisis of 1931, prior to which the only supervised credit institutions were the public savings banks. On , a decree established the office of (), for which Chancellor Heinrich Brüning appointed . In 1934, this was transformed into the , by new comprehensive banking legislation (german: Kreditwesengesetz of ). Initially the Reichsbank was associated with the supervisor ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
SolvV
SolvV is short for ''Solvabilitätsverordnung'' which means solvability directive in German, i.e. the delegated legislation of §§ 10 ff of the Kreditwesengesetz and in effect since 2006. The long name in German is ''Verordnung über die angemessene Eigenmittelausstattung von Instituten, Institutsgruppen und Finanzholding-Gruppen'', literally "directive on the appropriate setting of equity for (financial) institutes, groups of institutes and financial holding groups". There is an analogous directive with the same name in Austria. See also * Basel Accords as basis for the Kreditwesengesetz * MaRisk, minimum requirements for risk management in Germany * Sarbanes–Oxley Act on similar topics legally binding within the US External resources (Unofficial) text of the law (in German)* Definition oby Deutsche Bundesbank The Deutsche Bundesbank (), literally "German Federal Bank", is the central bank of the Federal Republic of Germany and as such part of the European System of Ce ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sarbanes–Oxley Act
The Sarbanes–Oxley Act of 2002 is a United States federal law that mandates certain practices in financial record keeping and reporting for corporations. The act, (), also known as the "Public Company Accounting Reform and Investor Protection Act" (in the Senate) and "Corporate and Auditing Accountability, Responsibility, and Transparency Act" (in the House) and more commonly called Sarbanes–Oxley, SOX or Sarbox, contains eleven sections that place requirements on all U.S. public company boards of directors and management and public accounting firms. A number of provisions of the Act also apply to privately held companies, such as the willful destruction of evidence to impede a federal investigation. The law was enacted as a reaction to a number of major corporate and accounting scandals, including Enron and WorldCom. The sections of the bill cover responsibilities of a public corporation's board of directors, add criminal penalties for certain misconduct, and requir ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Basel II
Basel II is the second of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. It is now extended and partially superseded by Basel III. The Basel II Accord was published in June 2004. It was a new framework for international banking standards, superseding the Basel I framework, to determine the minimum capital that banks should hold to guard against the financial and operational risks. The regulations aimed to ensure that the more significant the risk a bank is exposed to, the greater the amount of capital the bank needs to hold to safeguard its solvency and overall economic stability. Basel II attempted to accomplish this by establishing risk and capital management requirements to ensure that a bank has adequate capital for the risk the bank exposes itself to through its lending, investment and trading activities. One focus was to maintain sufficient consistency of regulations so to limit competit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Basel III
Basel III is the third Basel Accord, a framework that sets international standards for bank capital adequacy, stress testing, and liquidity requirements. Augmenting and superseding parts of the Basel II standards, it was developed in response to the deficiencies in financial regulation revealed by the financial crisis of 2007–08. It is intended to strengthen bank capital requirements by increasing minimum capital requirements, holdings of high quality liquid assets, and decreasing bank leverage. Basel III was published by the Basel Committee on Banking Supervision in November 2010, and was scheduled to be introduced from 2013 until 2015; however, implementation was extended repeatedly to 1 January 2022 and then again until 1 January 2023, in the wake of the COVID-19 pandemic. The new standards that come into effect in January 2023, that is, the Fundamental Review of the Trading Book (FRTB) and the Basel 3.1: Finalising post-crisis reforms, are sometimes referred to as Ba ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
KonTraG
The Law on Control and Transparency in Business (german: Gesetz zur Kontrolle und Transparenz im Unternehmensbereich) (abbr. KonTraG) is a comprehensive law passed by the German Bundestag on 5 March 1998. It entered into force on 1 May 1998, although some provisions were adopted at later dates. It set new standards of corporate governance for German publicly listed companies. It is similar to the U.S. Sarbanes-Oxley Act of 2002. Aims and content The aim of the KonTraG is to improve corporate governance in German companies. Several provisions of commercial and company law have been amended by this Act. The KonTraG specifies and expands mainly the provisions of the German Commercial Code and the Stock Corporation Act. KonTraG has extended the liability of the management boards, supervisory boards and auditors in companies. The core of the KonTraG is a regulation that forces corporate management to implement and operate a company-wide early risk identification system, as well as to p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Banking In Germany
Banking in Germany is a highly leveraged industry, as its average leverage ratio (assets divided by net worth) as of 11 October 2008 is 52 to 1 (while, in comparison, that of France is 28 to 1 and United Kingdom is 24 to 1); its short-term liabilities are equal to 60% of the German GDP or 167% of its national debt. History From the 15th century, banking families such as Fugger, Welser and Hochstetter were international mercantile bankers and venture capitalists. The oldest bank still in existence in Germany, Berenberg Bank, was founded by Dutch brothers Hans and Paul Berenberg in 1590, is still owned by the Berenberg family, and is the world's oldest or second oldest bank, depending on the exact definition. Market overview Germany has universal banking. The private customer mostly has to choose between three kinds of banks (German "three pillar system"): (A) private banks (including direct banks): *the largest ones are Deutsche Bank, Postbank (acquired by Deutsche Bank), ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
2012 Establishments In Germany
1 (one, unit, unity) is a number representing a single or the only entity. 1 is also a numerical digit and represents a single unit of counting or measurement. For example, a line segment of ''unit length'' is a line segment of length 1. In conventions of sign where zero is considered neither positive nor negative, 1 is the first and smallest positive integer. It is also sometimes considered the first of the infinite sequence of natural numbers, followed by 2, although by other definitions 1 is the second natural number, following 0. The fundamental mathematical property of 1 is to be a multiplicative identity, meaning that any number multiplied by 1 equals the same number. Most if not all properties of 1 can be deduced from this. In advanced mathematics, a multiplicative identity is often denoted 1, even if it is not a number. 1 is by convention not considered a prime number; this was not universally accepted until the mid-20th century. Additionally, 1 is the s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
